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:

Inventory Sold

The quantity of products or merchandise that a company has sold to its customers; these goods have been moved out of inventory and recognized as revenue.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made periodically, typically at the end of an accounting period, rather than after each transaction.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net income or loss for that period.