Which of the Following Statements Is a Correct Interpretation of Some

question 63

Multiple Choice

Which of the following statements is a correct interpretation of some economists' views?

• A) When the incomes of the poor are increased, the poor purchase more goods and services, and this causes lower profits.
• B) When the government gives income to the head of a household, other members of the household remain in need.
• C) When the rich do well, the total pie is increased so much that the benefits that trickle down to the poor are greater than the proceeds they would get from redistribution.
• D) When the rich do well, the total pie is decreased, so that the poor are worse off than they were before.

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Definitions:

Domestic Consumers

Individuals or entities within a country that purchase goods and services for personal use or consumption.

Domestic Producers

Refers to businesses and individuals that produce goods and services within a country's borders.

Tariff

A tax imposed by a government on goods and services imported from other countries to raise state revenue or to protect domestic industries.

Total Surplus

The total net gain to consumers and producers from trading in a market, represented by the sum of consumer and producer surplus.