Explain the concept of income distribution.

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Explain the concept of income distribution.

Income distribution refers to the way in which a society's total income is divided among its members. It examines the allocation of income across different individuals or groups within a society, highlighting the disparities or inequalities that may exist. Income distribution can be measured using various indicators such as the Gini coefficient, which quantifies the level of income inequality within a population. The concept of income distribution is important in understanding the economic well-being and social dynamics of a society, as it can impact factors such as poverty rates, social mobility, and overall societal stability.