Standard Census Data on the Distribution of Income

question 51

Multiple Choice

Standard Census data on the distribution of income:

• A) take all taxes and transfer payments into account.
• B) are before taxes in that they do not account for personal income and payroll taxes.
• C) include noncash transfers.
• D) exclude cash transfers.

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Definitions:

Equity

The concept of fairness in economics, typically referring to ownership interest in a company or property, or the idea of justice in distribution of wealth or resources.

Command Economy

An economic system where the government controls the major aspects of production, distribution, and exchange of goods and services.

Central Planning

An economic system where all major production, investment, and distribution decisions are made by a central authority, typically the government.

Free Enterprise

An economic system in which private businesses operate in competition and largely free of state control, with minimal government intervention.