One Way to Reduce the Degree of Income Inequality Is

question 13

Multiple Choice

One way to reduce the degree of income inequality is to

• A)increase transfer payments going to people with low labor and asset incomes and increase taxes on people with high labor and asset incomes.
• B)decrease transfer payments going to people with low labor and asset incomes and decrease taxes on people with high labor and asset incomes.
• C)increase transfer payments going to people with low labor and asset incomes by less than taxes are increased on the same people.
• D)increase transfer payments going to people with high labor and asset incomes by more than taxes are increased on the same people.

---

Definitions:

Processing Department

A specific section within a manufacturing facility where a particular stage of production is completed.

Cost Per Equivalent Unit

Cost per equivalent unit is a calculation used in process costing that divides the total cost of production by the number of units produced, adjusted for partial completion.

Conversion Costs

Expenses related to converting raw materials into finished goods, including direct labor costs and manufacturing overhead.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into an equivalent number of fully completed units for inventory valuation.