Mirna Sweillam
Essay questions Chapter 5 Economic Development
1) Explain the difference between size and functional measures of income distribution
Size Distribution Functional distribution
It is arranging all individuals by ascending
personal incomes and then dividing the total
population into distinct groups (like quintiles
and deciles). And then determine what
proportion of the total national income is
received by each income group.
It attempts to explain the share of total
national income that each of the factors of
production (land, labor, and capital) receives,
instead of looking at individuals as separate
entities.
