Regarding Income Distribution, Which of the Following Is True

question 99

Multiple Choice

Regarding income distribution, which of the following is true?

• A) The close link between personal income and provision of productive resources to others provides individuals with a strong incentive to develop skills.
• B) Income can be taxed away from some and transferred to others without altering the incentive to engage in productive activities.
• C) Holding technology constant, the size of the economic pie available for distribution among economic participants is fixed.
• D) In a democratic setting, the government's tax and spending policies can redistribute income without influencing the size of the economic pie.
• E) Both b and d are correct.

Understand the consistency pressures among beliefs and behaviors and their implications.

Understand the concept of equivalent units of production in process costing.

Calculate equivalent units for materials and conversion costs.

Understand the impact of material and conversion costs on the equivalent units of production.

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Definitions:

Accord and Satisfaction

A legal settlement in which a dispute is resolved by the parties agreeing (accord) and performing (satisfaction) a negotiated agreement, often involving a payment different from what was originally due.

Substituted Contract

An agreement that replaces an existing contract, typically with the consent of all parties involved, establishing new terms and obligations.

Novation

The act of replacing one party in a contract with another party, or altering the terms of a contract, with all parties' consent, resulting in a new agreement.

Material Breach

A significant violation of a contract that permits the other party to either compel performance, seek remedies for damages, or terminate the agreement.