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:

Door Hooks

Hardware items typically mounted on doors or walls for hanging or holding clothes, towels, and other items securely.

Marginal Utility

The added satisfaction or utility that a consumer receives from consuming one additional unit of a good or service.

Turkey

A country located at the crossroads of Europe and Asia known for its historical heritage, or a domesticated bird often raised for its meat.

Mashed Potatoes

A dish commonly made by boiling and then mashing potatoes, often seasoned or mixed with milk and butter.