Question

the functional distribution of income refers to distribution of income between

Answer 1

FUNCTIONAL DISTRIBUTION MEASURES HOW MUCH OF THE INCOME IN SOCIETY GOES TO THE PEOPLE WHO OWN THE VARIOUS KINDS OF RESOURCES...WE KNOW THAT THERE ARE THREE KINDS OF RESOURCES : LAND , LABOR AND CAPITAL....FUNCTIONAL INCOME DISTRIBUTION TELLS US HOW MUCH OF THE INCOME IN AN ECONOMY GOES TO THE GROUPS OF PEOPLE WHO OWN EACH OF THESE....BY CONTRAST , PERSONAL INCOME DISTRIBUTION SIMPLY TELLS US HOW MUCH MONEY GOES TO VARIOUS INDIVIDUALS , REGARDLESS OF WHICH OF THESE GROUPS THEY BELONG TO....

FUNCTIONAL DISTRIBUTION AND PEESONAL DISTRIBUTION OF INCONE REFER TO THE WAYS IN WHICH INCOME IS DIVIDED UP WITHIN AN ECONOMY.....HOWEVER , FUNCTIONAL INCOME DISTRIBUTION REFERS TO THE DIVISION BETWEEN GROUPS OF PEOPLE WHILE PERSONAL INCONE DISTRIBUTION REFERS TO THE DIVISION AMONG INDIVIDUALS....

FUNCTIONAL INCOME DISTRIBUTION DEALS WITH THE AMOUNT OF INCOME RELATIVE TO THE FACTORS OF PRODUCTION.....THE FACTORS OF PRODUCTION ARE LAND , LABOR , AND THE ENTREPRENEUR....FUNCTIONAL INCOME DISTRIBUTION WILL LOOK AT HOW MUCH RENT A PIECE OF LAND CAN GET....IT WILL LOOK AT HOW MUCH PAY A WORKER RECEIVES....IT WILL ALSO EXAMINE HOW MUCH INTEREST COMES FROM THE CAPITAL THAT IS INVESTED , AND HOW MUCH PROFIT AN ENTREPRENEUR CAN MAKE.....