Which of the Following Is True

question 45

Multiple Choice

Which of the following is true?

• A)Efficiency refers to the size of the economic pie; equality refers to how the pie is divided.
• B)Government policies usually improve upon both equality and efficiency.
• C)As long as the economic pie continually gets larger, no one will have to go hungry.
• D)Efficiency and equality can both be achieved if the economic pie is cut into equal pieces.

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Definitions:

Investment Spending

The expenditure on physical assets like buildings, machinery, and equipment which is used to produce goods and services in the future.

Government Policy

Strategies or actions taken by a government to influence its economy or society, which may include laws, regulations, decisions, and actions.

Private Saving

The portion of individuals' or households' income that is not consumed and is instead saved or invested.

Public Saving

The difference between government tax revenues and government spending. If positive, it indicates a budget surplus; if negative, a deficit.