The ________ Explains That the Redistribution of Income Occurs Because

question 41

Multiple Choice

The ________ explains that the redistribution of income occurs because ________.

• A) median voter theory; a political party is more likely to retain power by enacting laws that make its supporters as well off as possible
• B) utilitarian theory; the big tradeoff favors efficiency
• C) excess burden theory; utilitarianism favors equality over efficiency
• D) Lorenz curve; the lowest quintile of households receives the smallest level of benefits
• E) progressive tax theory; higher taxes are best at equalizing income

---

Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost of those materials.

DL Wage Variance

The difference between the budgeted wage and the actual wage paid to direct labor employees.

DL Efficiency Variance

The difference between the actual hours worked by direct labor to produce goods and the expected (or standard) hours, multiplied by the standard labor rate.

Skilled Engineering Labor

Workforce with specialized technical and engineering skills, vital for designing, implementing, and maintaining complex systems.