1. 5.2 Distribution and redistribution of incomes
Understand what is meant by distribution of income.
Understand why incomes are unevenly distributed.
Understand what is meant by redistribution of income.

2. Key Terms Page 71. Distribution of Income Redistribution of Income
Inequalities of income
Transfer Payments

3. Distribution of Income
The total income of a country is not shared out equally, so there is an uneven distribution of income. This is because of;
1. Wages
2. Other incomes

4. Redistribution of income.
This is a UK Government Policy: redistribution of income in order to reduce inequalities of income, between individuals and households.
This is done by taking more taxes form higher income groups and give more income (benefits) to lower income groups.
Such benefits are called ‘transfer payments’.