The Factor Distribution of Income Reflects That

question 110

Multiple Choice

The factor distribution of income reflects that:

• A) land, labor, and capital are equally distributed.
• B) most people receive their income based on their labor contribution.
• C) most people receive their income based on their capital distribution.
• D) land provides most income to the population.

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Definitions:

Growth

An increase in the economic capacity of a country to produce goods and services, compared from one period of time to another.

Stock Variable

A quantity measured at one specific time, contrasting with flow variables, which are measured over a period of time.

Government Bond

A type of security issued by a government to raise funds from investors, with a promise to pay regular interest and repay the principal at maturity.

Fiscal Spending

Government expenditures on goods, services, and public works financed by taxes, borrowing, or other resources.