Determining the Most Socially Desirable Level of Income Equality or Inequality

question 169

Multiple Choice

Determining the most socially desirable level of income equality or inequality

• A)is done through markets, rather than by the government
• B)is done directly by firms
• C)involves normative economics
• D)involves evaluation of public goods
• E)involves evaluation of all externalities, both positive and negative

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Definitions:

Small Business

An independently owned and operated company with limited size and revenue, according to industry standards, often characterized by a small workforce.

Independently Owned

Businesses or properties that are owned by individuals or private entities rather than corporations or chains.

Franchise

A business arrangement where one party (the franchisor) grants another party (the franchisee) the right to use its trademark or business model to offer, sell, or distribute goods or services.

Necessity-based Entrepreneurship

Entrepreneurial activities initiated as a result of limited job opportunities or economic necessity, rather than from the identification of a new business opportunity.