Which of the Following Is True Concerning the Distribution of Income

question 22

Multiple Choice

Which of the following is true concerning the distribution of income?

• A) Various measures of income inequality can be used to objectively determine the fairness of an income distribution.
• B) When the political process is democratic, income transfer programs will redistribute income from the rich to the poor.
• C) The fairness of an income distribution is a normative concept; it cannot be determined objectively by economic criteria.
• D) Income inequality is the fairest method to allocate income.

Identify and explain the redistribution effects of trade policies on consumers, producers, and the government.

Understand how global trade organizations and agreements, such as the WTO and NAFTA, aim to reduce trade restrictions and their expected impacts.

Analyze the effects of specific tariffs and quotas on market equilibrium, including the calculation of government revenue and welfare losses.

Distinguish between the different types of trade restrictions and their purposes.

---

Definitions:

Pay Note

A written promise to pay a specified sum of money to a designated party, also known as a promissory note.

Negotiable Instrument

A written promise or order to pay a specific amount of money that can be transferred by endorsement or delivery, such as checks and promissory notes.

Claim Negligence

The legal accusation that a party failed to exercise a reasonable standard of care, resulting in harm or damage to another.

Dishonor

The refusal or inability of an entity to fulfill a financial obligation, such as a check or bill.