The Empirical Data Indicate That the Tax System and the Transfer

question 96

Multiple Choice

The empirical data indicate that the tax system and the transfer programs of the government

• A)increase the degree of inequality in the distribution of income.
• B)make no change in the degree of inequality in the distribution of income.
• C)reduce the degree of inequality in the distribution of income.
• D)affect the distribution of wealth, not income.

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Definitions:

Nominal Data

This data type categorizes variables without a natural order or ranking among the categories.

Ordinal Data

A type of categorical data in which the order of values is significant, but the differences between values are not necessarily consistent.

Interval Data

A type of data measurement that not only keeps order but also has consistent differences between consecutive values, without a true zero point.

Ordinal Data

Data that represent order or ranking among categories but do not quantify the difference between categories, such as educational levels or satisfaction ratings.