As a Result of Government Taxation and Redistribution Programs

question 173

Multiple Choice

As a result of government taxation and redistribution programs,

• A)the bottom quintile gains the least income.
• B)the top three quintiles lose income, but the third quintile loses the most.
• C)the two bottom quintiles gain income and the others lose.
• D)only the bottom quintile gains income.
• E)only the top quintile loses income.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Automatic Stay

A legal provision that halts all lawsuits, foreclosures, and collection activities against a debtor the moment a bankruptcy petition is filed.

Creditor

An individual or institution that lends money or extends credit to another party, known as the debtor.

Lien

A legal right or interest that a lender holds in the debtor's property, serving as security for the repayment of a debt.