The Distribution of Income Generated by the Price System

question 35

Multiple Choice

The distribution of income generated by the price system

• A) inevitably becomes egalitarian.
• B) may not create sufficient spending power to provide for the needs of the poor.
• C) is an example of an external diseconomy.
• D) is considered by most people to be fair and therefore in no need of alteration to suit humanitarian concerns.
• E) enables firms to satisfy all consumer desires.

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Definitions:

Subsidiaries

Companies that are fully or partly owned and partly or wholly controlled by another company, known as the parent company.

Investor

An individual or organization that allocates capital with the expectation of receiving financial returns, often through the purchase of securities, real estate, or other investment assets.

Investee

The entity in which an investor holds an interest, often evidenced through ownership of securities or equity.

Voting Common Stock

A class of stock that grants the holder the right to vote on corporate matters at shareholders' meetings.