Regarding Income Distribution, Which of the Following Is True

question 16

Multiple Choice

Regarding income distribution, which of the following is true?

• A) The size of the economic pie to be divided among a country's residents is fixed.
• B) Government tax and transfer programs have exerted a strong equalizing impact on the distribution of income in the United States.
• C) The method of allocating income is relevant to the issue of fairness as well as the pattern of income distribution.
• D) The optimal distribution of income can be determined by objective economic criteria.

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Definitions:

Solar Power

Energy from the sun that is converted into thermal or electrical energy for use by humans.

Natural Gas

A fossil fuel consisting mainly of methane, used as a source of energy for heating, cooking, and electricity generation.

Ethanol

A volatile, flammable, colorless liquid commonly used as a biofuel and as the principal type of alcohol found in alcoholic beverages.

Corn

A cereal grain which serves as a staple food in many parts of the world, also used as feed for livestock and for various industrial applications.