The Basic Economic Argument for Greater Income Equality Is That

question 8

Multiple Choice

The basic economic argument for greater income equality is that

• A) an equal distribution of income is the logical outcome of any tax-transfer program.
• B) because citizens enjoy political equality, they are also entitled to economic equality.
• C) a more equal distribution of income will tend to maximize incentives to work, invest, and assume risk.
• D) a more equal distribution of a given amount of income will increase the total utility of consumers.

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Definitions:

Price of Feed

The cost of food given to livestock, which can significantly affect agricultural production costs and pricing.

Bankruptcy

A legal process through which individuals or businesses unable to meet their debt obligations can seek relief and reorganize their finances.

Supply Curve

A graphical representation showing the relationship between the quantity of a good that producers are willing to sell and the price of the good.

Firms Expect

The anticipations or outlooks that companies have regarding future economic conditions or their own financial performance.