Question 50
National IncomeA nation's distribution of income shows
- A.the value of all goods produced in the economy
- B.how income is divided among different groups
- C.where the economy system is on its production possibility curve
- D.the consumption behaviour of the people.
Show the answer and explanation
Answer: B (how income is divided among different groups)
Explanation
Income distribution describes how the national income is shared among groups such as households, regions or factors of production.