Which of the Following Is True

question 15

Multiple Choice

Which of the following is true?

• A) Taxes and transfers generally increase the income share of the bottom quintile of income recipients, while reducing the share of the top group of earners.
• B) In a market economy, the distribution of income is determined by the quantity and value of the resources supplied by the various individuals, and nearly half the value of resources owned by the rich was inherited.
• C) Between 1980 and 2009, the income share received by the highest quintile of earners fell, while the share received by the bottom quintile of earners rose.
• D) All of the above are true.

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Definitions:

Mean Difference

The average difference between two sets of numbers or measurements, often used to compare the means from two samples.

T-distribution

A type of probability distribution that is symmetric and bell-shaped, but with heavier tails, used especially in scenarios with smaller sample sizes.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or parameters in a dataset.

Student T-distributed

A probability distribution used in statistical analyses when the sample size is small and the population standard deviation is unknown.