Which of the Following Is True

question 50

Multiple Choice

Which of the following is true?

• A) The close link between personal income and provision of productive resources to others provides individuals with a strong incentive to develop skills.
• B) Income can be taxed away from some and transferred to others without altering the incentive to engage in productive activities.
• C) Holding technology constant, the size of the economic pie available for distribution among economic participants is fixed.
• D) In a democratic setting, the government's tax and spending policies can redistribute income without influencing the size of the economic pie.
• E) Both b and d are correct.

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Definitions:

Routine Request

A standard communication asking for something that is considered normal or expected in the context of business or professional interactions.

Key Applications

Critical or essential software programs that serve specific purposes within an organization or for individual use.

Replacement Request

A formal or informal request to replace something that is lost, damaged, unsatisfactory, or no longer meets the needs.

External Respiration

The exchange of gases (oxygen and carbon dioxide) between the atmosphere and the blood through the lung alveoli.