Which of the Following Arguments Support the Proposition That Society

question 215

Multiple Choice

Which of the following arguments support the proposition that society should accept at least some income inequality?

• A) Income redistribution will require taxation, causing inefficiently low levels of labor supply and saving, thus decreasing the size of the economic pie.
• B) Administrative costs associated with income redistribution imply that low-income people receive less than $1 for each dollar taken from high-income people.
• C) Income redistribution programs divert skilled labor and capital to tax compliance activities and away from production of goods and services that people value.
• D) All of the above answers are correct because all support the proposition that society should accept some income inequality.

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Definitions:

Completed During

Usually refers to the tasks, projects, or productions that are finished within a specific period.

Equivalent Units

A concept used in cost accounting to indicate a quantity of production expressed in terms of fully completed units, calculated to measure and assign costs to partially completed goods.

Material Costs

Material Costs are the expenses incurred for the materials that are used in the production process of goods or services.

First-In, First-Out

An inventory valuation method which assumes that the first items purchased or manufactured are the first ones sold.