Which of the Following Arguments Support the Proposition That Society

question 215

Multiple Choice

Which of the following arguments support the proposition that society should accept at least some income inequality?

• A) Income redistribution will require taxation, causing inefficiently low levels of labor supply and saving, thus decreasing the size of the economic pie.
• B) Administrative costs associated with income redistribution imply that low-income people receive less than $1 for each dollar taken from high-income people.
• C) Income redistribution programs divert skilled labor and capital to tax compliance activities and away from production of goods and services that people value.
• D) All of the above answers are correct because all support the proposition that society should accept some income inequality.

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Definitions:

Histogram

A type of bar chart used in statistics to represent the distribution of data by showing the number of data points that fall within a range of values.

Normally Distributed Curves

Graphical representations of a normal distribution, showing how data points are symmetrically distributed around the mean.

Mean

A statistical measure representing the average value in a set of numbers, calculated by dividing the sum of all values by the number of values.

Median

The middle value in a list of numbers, which divides the dataset into two halves.