Final answer:
The measurement of income distribution among the factors of production is called the b. functional distribution of income. The Lorenz Curve and Gini Coefficient illustrate income inequality, with the Lorenz Curve showing cumulative shares of income received by each quintile.
Step-by-step explanation:
The measurement of income distribution that splits income earned among the various factors of production, such as labor and capital, is known as the functional distribution of income. This contrasts with other methods of analyzing income distribution, such as the Lorenz Curve or the Gini Coefficient, which are often used to illustrate the degree of income inequality within a population by showing the cumulative shares of income by quintiles. The Lorenz Curve, for example, shows how far actual income distribution deviates from perfect equality. Over time, changes in household structures and technological advancements have been cited by economists as reasons for an increase in income inequality in places like the United States, which is visually represented by the Lorenz Curve moving away from the line of perfect equality from 1980 to more recent years like 2011 or 2020.