Why Do Scholars Argue That Government Activity Should Be Considered

question 165

Multiple Choice

Why do scholars argue that government activity should be considered when evaluating the measured income distribution?

• A) The middle-income and higher-income quintiles have benefited more than the poor from government-subsidized airports, operas, and museums.
• B) The higher-income quintiles have benefited more than the poor from housing subsidies and school lunch programs.
• C) The lowest-income quintile has benefited more than middle-income and upper-income quintiles from government-subsidized airports, operas, and museums.
• D) The lowest-income quintile has benefited from government-subsidized higher education more than have middle-income and higher-income quintiles.

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Definitions:

Injury

Physical harm or damage to the body caused by external force, which may result from accidents, falls, hits, weapons, and other causes.

Marginal Utility

The change in total utility generated by consuming one additional unit of a good or service.

Uncertain Income

Income that is not guaranteed or predictable, often varying significantly over time or depending on specific conditions.

Constant

A value that does not change and remains steady within a specified context.