Income Economics Ib Definition

See ppf diagram at right.

Income economics ib definition. Even though inequality does provide incentives for businesses to research and. The income the earner is free to spend or save after essential expenditure such as food clothing and shelter have been deducted. Gross domestic product gdp is often used to measure economic growth. The human development index is normally used to measure a country s economic development.

Economics can be a very challenging subjet but going over the concepts in your own time as you learn the course when the mountain of coursework cas and ee is not too high is definitely the way forward. 3 profits flowing to businesses and dividends distributed to shareholders. A keynesian school explanation for the instability of investment in a market economy. Income is a flow of money going to factors of production.

Some people seem to pick the subject up naturally however despite its logical foundations some of the most intelligent people i know found it difficult as all of the components of the. A qualitative measure of a country s standard of living which takes into account numerous factors such as education and health. Gni gross national income is the value of total output produced in an economy over a period of time and net income from abroad taken into account. 1 wages and salaries paid to people from their jobs.

Gni gdp net income from abroad. Due to unequal distribution of factors of production it is hardly possible for the market system to result in equitable distribution of income. Income is money that an individual or business receives usually in exchange for providing a good or service or through investing capital. 2 money paid to people receiving welfare benefits such as the state pension and tax credits.

Gross income of an individual or a firm from which direct taxes have been deducted. A much broader concept that purely economic growth involving non economic and often quite intangible improvements in the standard of living for example freedom of speech freedom from oppression health care education and employment. 2 3 macroeconomic objectives equity in the distribution of income.