Which of the Following Is Not a Finding of Cox

question 467

Multiple Choice

Which of the following is not a finding of Cox and Alm regarding the gap between rich and poor?

• A)The gap shrinks if taxes are taken into account.
• B)The gap shrinks if consumption, rather than income, is compared.
• C)The gap shrinks if the number of people in the household is taken into account.
• D)The gap shrinks if the state of residence is taken into account.

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Definitions:

Net Capital Outflows

The value of domestic assets purchased by foreigners minus the value of foreign assets purchased by residents of a country.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period of time.

Imports

Goods and services that are produced abroad and sold domestically

Net Exports

The value of a country's total exports minus its total imports.