Which of the Following Is True About Income Distribution

question 62

Multiple Choice

Which of the following is true about income distribution?

• A) During any given year, the size of the economic pie available for allocation to individuals is fixed.
• B) When the link between worker productivity and reward is weakened, individuals have less incentive to create income.
• C) If they reduce income inequality, taxes and income transfers will not alter the incentive of individuals to engage in productive activity.
• D) The total output of an economy is unrelated to the distribution of income.

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