ECON 1100 1nd Edition Lecture 34 Outline of Last Lecture I. Income DistributionOutline of Current Lecture I.Incomea.Laborb.Capitalc.TransferCurrent LectureI. IncomeEcon majors = great salary right out of schoolTop 1% of income -> $400,000+/yrMany doctorsWhat determines placement on line (Income by %)Sources of incomeResources you own & price you can sell them atProperty: land, stock, bank accounts you own$ people get from gov’tSam Walton – founder of Wal-MartI. Income – LaborWages (per hour) & salaries (per year)Not same for allDeterminantsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Skills, physical characteristicsHuman capital – learning/knowledgeOn avg, pay-off of education = very highAdd knowledge by learning moreCompensation differentialsHigher pay for working conditions, all else equalMore dangerous = pay moreI. Income – Capital Income from property (land, financial assets, housing), rental, interest, dividend incomesI. Income – TransferReceiving income from gov’t programsMeans-tested -> have to qualify due to income (poor only)TANF (welfare)SNAP (food stamps)Medicaid (health care)Not means-tested -> for allSocial Security (for all)Based on labor income (how
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