The Principal Mechanism for Redistributing Incomes Is

question 125

Multiple Choice

The principal mechanism for redistributing incomes is

• A)The tax-and-transfer system.
• B)Antitrust policy.
• C)Market power.
• D)The production of public goods.

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Definitions:

Diminishing Returns

A principle stating that after a certain point, additional investment or effort yields progressively smaller increases in output.

Marginal-cost Curve

The marginal-cost curve represents how the cost of producing one additional unit of a good changes as its production volume varies.

Marginal Product

The additional output that is generated by employing one more unit of a specific input, ceteris paribus.

Total Fixed Cost

The sum of all expenses that remain constant regardless of the level of production or output within a business.