Which of the Following Is True of the Tax and Transfer

question 25

Multiple Choice

Which of the following is true of the tax and transfer programs of the United States?

• A) Tax-transfer programs persistently redistribute income from the rich to the poor.
• B) Social Security, the largest transfer program, redirects income toward the elderly, a group with above-average levels of both income and wealth.
• C) The bulk of agriculture subsidies go to large farmers with above-average incomes.
• D) Taxes generally take a larger share of the income of the poor than is true for those with higher incomes.
• E) Both b and c are true.

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Definitions:

Compounded Annually

Interest on an investment that is calculated once a year and added to the principal sum of the investment.

Compounded Monthly

Compounded Monthly means applying interest to both initial principal and the accumulated interest from previous periods on a monthly basis.

Lost Wages

The income an individual is unable to earn due to their inability to work, often resulting from an injury or illness.

Compounded Monthly

A process where interest is calculated and added to the principal sum of a loan or deposit each month.