Which of the Following Is True

question 30

Multiple Choice

Which of the following is true?

• A) The size of the economic pie to be divided among a country's residents is fixed.
• B) Government tax and transfer programs have exerted a strong equalizing impact on the distribution of income in the United States.
• C) The method of allocating income is relevant to the issue of fairness as well as the pattern of income distribution.
• D) The optimal distribution of income can be determined by objective economic criteria.

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Definitions:

Finished Goods

Finished Goods are products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Merchandise Inventory

Goods and products that a business holds in stock with the intent of selling them to customers.

FIFO

First-In, First-Out, an inventory valuation method where the first items placed in inventory are the first sold.

LIFO

An inventory valuation approach called Last In, First Out dictates that the newest items in inventory are the first to be accounted for as sold or used.