Income distribution describes how total national income is divided among the population, typically analyzed by what method?

• A. Gini coefficient
• B. Income quintiles or deciles
• C. HDI components
• D. Life expectancy

Answer: (B)

Dividing the population into equal-income groups and comparing the shares of total income they hold is the clearest way to see how income is spread. Using quintiles (five groups) or deciles (ten groups) orders people from lowest to highest income and splits them into equal-sized slices, then looks at how much of the national income each slice earns. This makes it easy to spot whether a large share goes to the top, or if income is more evenly distributed, and to compare across countries or over time.

Other measures exist, like the Gini coefficient, which condenses inequality into a single number, but it doesn’t show the actual distribution across groups. HDI components and life expectancy relate to development and health indicators rather than describing how income is divided among the population.