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:

Discriminates

The act of unjustly distinguishing or treating people differently based on characteristics such as race, age, gender, etc.

Higher Costs

Situations in which the expenses related to producing or obtaining goods and services increase, leading to a rise in prices or a squeeze on profit margins.

Labor-Market Discrimination

The differential treatment of individuals in the labor market based on race, gender, religion, age, sexual orientation, or other non-relevant factors that reduces prospects for equal opportunity employment.

Science And Math

Fields of study focused on understanding the natural world through observation and experimentation, and applying mathematical principles to quantify relationships, respectively.