Which of the Following Is True

question 89

Multiple Choice

Which of the following is true?

• A) There is a fixed size of economic pie available for the government to allocate among individuals.
• B) In a market economy, the link between productivity and income provides individuals with an incentive to provide resources that are highly valued by others.
• C) Taxes and transfers do not affect the amount of income that is created.
• D) How income is distributed exerts little impact on the total amount of income generated.

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Definitions:

RFQ

A Request for Quotation (RFQ) is a business process in which a company asks external suppliers to offer a quote for the supply of specific goods or services under designated conditions.

Reverse Auction

An auction in which the roles of buyer and seller are reversed, with the seller competing to obtain business from the buyer and prices typically decreasing as the auction progresses.

Disintermediation

Elimination of intermediaries in electronic commerce.

Substitute Products

Products that can serve as replacements for each other; when the price of one product rises, the demand for its substitute may increase.