Comparing the Distribution of Income After Taxes and Benefits to the Distribution

question 71

Multiple Choice

Comparing the distribution of income after taxes and benefits to the distribution of market income, it is true that the distribution of income after taxes and benefits is ________ the distribution of market income.

• A)more equally distributed than
• B)less equally distributed than
• C)more equally distributed only for the middle quintile than
• D)as equally distributed as the
• E)more equally distributed for the bottom two quintiles and less equally distributed for the top three quintiles than

---

Definitions:

Indirect Cost

Costs not directly traceable to a specific product or project, such as utilities or rent.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profits.

Direct Manufacturing Cost

Costs that are directly attributable to the production of a specific product, including direct materials and direct labor.

Indirect Manufacturing Cost

Costs related to production that are not directly associated with the product, such as maintenance, supervision, and utilities.