If Complete Equality of Income Were Legislated, Which of the Following

question 36

Multiple Choice

If complete equality of income were legislated, which of the following would economics predict?

• A) People would become richer.
• B) Society would gain utility from the extra goods produced.
• C) Individuals would willingly work longer hours and thus produce more.
• D) The incentive to produce and perform efficiently would be virtually eliminated.

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Definitions:

Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, taxes, and costs involved in sustaining the activity.

Dollar Sales Revenue

The sum of all revenue earned from selling goods or services prior to subtracting any costs or expenses.

Market Share

The slice of a market under the control of a particular company or product.

Unit Sales

The total number of individual items or units sold within a specific timeframe.