What does income distribution examine?

Income distribution examines how income is divided among a population, which is a fundamental aspect of economics. This concept focuses on the relative share of income received by various groups, such as different socioeconomic classes, genders, or geographic regions. Understanding income distribution is crucial for analyzing inequality within an economy, as it reveals how resources and wealth are allocated among individuals or households.

The other options do not accurately capture the essence of income distribution. The total earnings of a country pertains more to national income or gross domestic product, rather than how income is specifically shared among its citizens. The percentage of income held by the government relates to fiscal policy and budgetary allocations, rather than the distribution of income among the population. Lastly, income tax rates across different regions discuss taxation rather than the distribution of income itself, which means they do not address how income is shared among individuals or groups.