Which of the Following Statements Best Represents the Opinion of Many

question 137

Multiple Choice

Which of the following statements best represents the opinion of many economists regarding the impact that changes in tax laws have had on recent changes in income inequality in the United States?

• A)Reductions in income tax rates have favored high-income individuals more than low-income individuals. As a result, reductions in federal income tax rates have led to more income inequality.
• B)Reductions in income tax rates have created greater incentives for low-income individuals to work, save, and invest. As a result, reductions in federal income tax rates have led to less income inequality.
• C)Reductions in income tax rates probably have had little impact on the distribution of income.
• D)Reductions in income tax rates have been offset by increases in corporate income tax rates and payroll taxes. As a result, greater income inequality in the 1990s has been followed by a more equal distribution of income since 2001.

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Definitions:

Commission

An act of committing something, often referring to the act of carrying out certain tasks or duties, or a fee paid to an agent in exchange for conducting a transaction.

Sales Totals

The aggregate amount of sales revenue that a company or individual has generated within a specific time frame.

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.

Need for Affiliation

An individual's drive to relate to people and form social connections.