What does distribution of income refer to?

Distribution of income refers to how a nation's income is allocated among different groups within that society. This includes the varying levels of income received by individuals or households based on factors such as socio-economic status, occupation, and education. Understanding income distribution is crucial for analyzing economic inequality, social equity, and the overall health of an economy. It provides insight into how wealth and resources are shared or concentrated among different segments of the population, which can impact economic policies and social programs. Hence, option B accurately captures this concept by focusing on the division of income across groups within a nation.