The Government May Not Implement Policies Intended to Redistribute Income

question 83

Multiple Choice

The government may not implement policies intended to redistribute income in which of the following economic systems?

• A) laissez-faire capitalism
• B) command systems
• C) a mixed economy
• D) the market system

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Definitions:

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent and salaries.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Break-even Units

The number of units a company must sell to cover all its costs, with no profit or loss.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials or labor directly involved in producing a product.