Which of the Following Arguments Support the Proposition That Society

question 215

Multiple Choice

Which of the following arguments support the proposition that society should accept at least some income inequality?

• A) Income redistribution will require taxation, causing inefficiently low levels of labor supply and saving, thus decreasing the size of the economic pie.
• B) Administrative costs associated with income redistribution imply that low-income people receive less than $1 for each dollar taken from high-income people.
• C) Income redistribution programs divert skilled labor and capital to tax compliance activities and away from production of goods and services that people value.
• D) All of the above answers are correct because all support the proposition that society should accept some income inequality.

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Definitions:

Meals

Food that is prepared and served to individuals or groups, often at set times of day.

Patient-Visits

A measure used in healthcare management to count the number of times patients receive clinical services.

Static Budget

A budget set for a specific level of activity that does not change, even if actual levels of activity change.

Total Overhead Cost

The comprehensive sum of all indirect costs involved in operating a business, not directly tied to a specific product or service.