OCR GCSE Economics - 3.3 - Fair Distribution of Income

What is the distribution of income?

• The way producers pay their staff

• How incomes are shared out between individuals and households

• The way the government makes money

Which of these is not a type of income?

• Wages

• Rent

• Interest

• Profit

• Insurance

What is the correct definition of the term income?

• The reward for working

• The reward for the service provided by a factor of production, including labour

• The reward for the service provided by an employee

• The reward for the service provided the government

What is the correct definition of the term wealth?

• Is all the things someone owned by someone in their lifetime

• The market value of assets owned by people over their lifetime

• The market value of assets owned by people at a specific point in time

• The number of houses a person has

Alfie has saved 10% of his income of £30,000 in 2015. He owns a house worth £200,000 and has no other income, assets or savings. His wealth at the end of 2015 is:

• £3,000

• £30,000

• £200,000

• £203,000

Which of the following factors of production gives the reward profit?

• Land

• Labour

• Capital

• Enterprise

Which of the following factors of production gives the reward interest?

• Land

• Labour

• Capital

• Enterprise

What is the difference between gross income and net income?

• Net income is the full amount of money a person earns and gross income is the amount of money people earn after they have paid tax

• Net income is the full amount of money a person earns and gross income is the amount of money people earn after they have paid tax and all their bills

• Gross income is the full amount of money a person earns and net income is the amount of money people earn after they have paid tax

• Gross income is the full amount of money a person earns and net income is the amount of money people earn after they have paid tax and all their bills

Which of the following is a reason why income in the UK is unevenly distributed?

• There is a difference in the wages that people earn

• All people pay the same amount of tax

• All people earn the same amount

• Income-earning assets are distributed fairly

Why is wealth unevenly distributed in the UK?

• People who earn the most, spend the least

• People who earn the least, save the most

• People who earn the most spend their income on investments

• People who earn the least buy lots of assets