Economy, asked by sangamstha3158, 6 months ago

Income distribution as a social indicator in detail

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Answered by thezvezda1104
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꧁ ₳₦₴₩ɆⱤ ꧂

Income distribution is the smoothness or equality with which income is dealt out among members of a society. If everyone earns exactly the same amount of money, then the income distribution is perfectly equal.

Social indicators are defined as statistical measures that describe social trends and conditions impacting on human well-being. [1] Generally, social indicators perform one or more of three functions: providing information for decision-making.

Distribution of wealth and income, the way in which the wealth and income of a nation are divided among its population, or the way in which the wealth and income of the world are divided among nations. Such patterns of distribution are discerned and studied by various statistical means, all of which are based on data of varying degrees of reliability.A significant proportion of an economy’s higher incomes will derive from investment rather than earnings. It is often the case that the higher the income, the higher the investment-derived portion tends to be. Because most fortunes require long periods to accumulate, the existence of a class of very wealthy persons can result from the ability of those persons to retain their fortunes and pass them on to descendants. Earned incomes are influenced by a different kind of inheritance. Access to well-paid jobs and social status is largely the product of education and opportunity. Typically, therefore, well-educated children of wealthier parents tend to retain their parents’ status and earning power. A dynamic economy, however, increases the likelihood of attaining wealth and status through individual effort alone.

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