Regarding income distribution and the distribution of wealth

Question

Quizplus · Accepted Answer

A) Wealth is a stock concept because it refers to the total value of assets owned by an individual or a group of individuals at a point in time.
B) Income is a flow concept because it represents the total amount of money earned by an individual or a group of individuals over a period of time, usually a year.
C) Income can be viewed as a return on wealth because people with higher levels of wealth tend to have more assets that generate income, such as investments, real estate, and businesses. Thus, income distribution and wealth distribution are closely related phenomena, and understanding the interplay between the two is crucial for addressing issues of economic inequality.

Regarding Income Distribution and the Distribution of Wealth