The Purpose of Economic Science Is to

question 225

Multiple Choice

The purpose of economic science is to

• A) show people that it is better to want less.
• B) encourage people to care more about others.
• C) analyze the problems of market economies only.
• D) develop principles by which to rank alternative uses of scarce resources.
• E) reach consensus on economic goals and objectives

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Definitions:

Before-Tax Distribution

The allocation of income or wealth in a society before the effects of taxes are taken into account.

Progressive Income Tax

A tax system in which the rate of taxation increases as the taxable amount or income increases, making it more proportionately burdensome for wealthier individuals.

Higher Income

A level of earnings or revenue that is above average or an increase in financial earnings.

Marginal Utility

Marginal Utility is the additional satisfaction or benefit gained from consuming one more unit of a product or service.