The Functional Distribution of Income Refers to the Distribution of Income

question 27

Multiple Choice

The functional distribution of income refers to the distribution of income between

• A)individuals or households.
• B)rural individuals or households.
• C)urban individuals or households.
• D)the factors of production (land,labor and capital).

Recognize the role of government interventions in reducing information asymmetry.

Understand the rationale behind education as a signaling device in the labor market.

Analyze the impact of productivity differences on wage differentials and education investment.

Understand and evaluate the mechanisms of market signaling beyond education.

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Definitions:

Stanford-Binet

A standardized test that assesses intelligence and cognitive abilities in individuals, often used to diagnose intellectual disabilities or giftedness.

IQ

Stands for Intelligence Quotient, a score derived from one of several standardized tests designed to assess human intelligence.

Average

A numerical expression of the central or typical value in a set of data, calculated typically as the sum of the values divided by the number of values.

WISC-IV

Wechsler Intelligence Scale for Children, Fourth Edition; a standardized test designed to measure the intellectual ability of children between the ages of 6 and 16.