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Author Question: What is the difference between the functional and the personal distribution of income? What will ... (Read 68 times)

jCorn1234

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on: Jun 30, 2018
What is the difference between the functional and the personal distribution of income?
 
  What will be an ideal response?

Question 2

A consequence of the CPI bias is that it
 
  A) decreases government outlays.
  B) reduces outlet substitution bias.
  C) means that it is impossible to measure the inflation rate.
  D) increases international trade.
  E) distorts private contracts.


bd5255

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The functional distribution of income shows how total income is divided among the factors of production. The personal distribution of income shows how total income is divided among households.

Answer to Question 2

E


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