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When the focus is on how the tax system changes the distribution of income among capitalists, laborers, and landlords. This is referred to as the functional distribution of income.

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What are the types of income distribution?

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What s meant by income inequality.distinguish between personal and functional distribution of income.?

What is meant by income inequality? Distinguish between personal and functional distribution of income.


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Size distribution of income refers to how total income is distributed among individuals or households within an economy, often represented by measures like the Gini coefficient or income percentiles. In contrast, functional distribution of income focuses on how income is allocated among different factors of production, such as labor and capital, illustrating the share of income received by wages versus profits. Essentially, size distribution emphasizes who receives the income, while functional distribution examines how income is generated and distributed based on economic activities.


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