Describe the Personal distribution of income
Describe the Personal distribution of income?
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1. It is defined as by separating the population equal parts into 5 numerically or in quintiles.
2. Each quintile are compared when Proportions of total income is obtainable.
3. Unequal distribution of income shows its Comparison. For example: the top quintile is relative to the bottom fifth it shows how many times greater the share of income.
Illustrate “freedom is to some extent illusory”?
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Describe the Functional distribution of income?
Adam Smith wrote his Wealth of Nations within part like a refutation of the doctrines: (1) classical liberalism. (2) utilitarianism. (3) mercantilism. (4) physiocracy. (5) laissez faire capitalism.
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Illustrates the inverse relationship between price and quantity?
Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)
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