The Functional Distribution of Income Measures Which of the Following

question 36

Multiple Choice

The functional distribution of income measures which of the following?

• A) How federal tax revenues are related to the business function that employs taxpayers.
• B) The distribution of earnings by the factors of production.
• C) The proportion of income generated by the four types of expenditures on goods and services.
• D) The distribution of income among households.
• E) The distribution of income among nations.

---

Definitions:

Opportunity Cost

The outcome of selecting an alternative is the exclusion of potential benefits that could have been achieved with other selections.

Equilibrium Output

The level of output at which the quantity supplied equals the quantity demanded, leading to a stable market condition without surplus or shortage.

Purely Competitive Market

A theoretical market structure characterized by an infinate number of buyers and sellers, homogeneous products, and no barriers to entry or exit.

Consumer Surplus

The distinction between what consumers are willing and able to allocate financially for a good or service, and what they actually allocate.