If in Equitania,20% of the Population Receive 80% of the Income

question 197

Multiple Choice

If in Equitania,20% of the population receive 80% of the income and the remaining 80% of the population receive 20% of the income,Equitania's economy:

• A)is efficient.
• B)cannot be efficient since efficiency requires a more nearly equal distribution of income.
• C)may be efficient.
• D)is neither efficient nor equitable.

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Definitions:

Limited Partnership

A business organization with one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only up to the amount of their investment.

Pooled Talent

The strategy of combining skills, knowledge, and competencies of individuals from various backgrounds to achieve common goals or tackle complex problems.

Pooled Resources

The amalgamation of assets or capital from multiple sources or individuals for a common purpose, often to achieve a goal that would be difficult to achieve individually.

Tax Advantages

Financial benefits that apply to certain investments or accounts, which can reduce the amount of tax owed to the government.