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:

Statement of Cash Flows

A report detailing how fluctuations in balance sheet items and income impact cash and cash equivalents.

Income Statement

A financial statement showing a company's revenue, expenses, and profits over a specific period.

Balance Sheet

A financial statement that showcases a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the company's financial condition.

Stockholders' Equity

Stockholders' equity is the residual interest in the assets of an entity after deducting liabilities, representing ownership equity spread among shareholders.