Which of the Following Is Among the Arguments for Using

question 17

Multiple Choice

Which of the following is among the arguments for using government intervention to reduce income inequality?

• A) Taking money away from individuals who have earned it is unfair and immoral.
• B) Government intervention is more effective in promoting creativity and hard work than the hope of higher earnings.
• C) Large income differences eventually lead to political strife and will undermine support for a market economy.
• D) The income distribution statistics understate inequality because they fail to take economic mobility into account.

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Definitions:

Break-even

The point at which revenue received equals the costs associated with receiving the revenue, resulting in no net profit or loss.

Net Operating Income

Earnings before interest and taxes, representing the profit generated from normal business operations.

Sales Dollars

The total monetary value of sales transactions made by a business within a specific period.

Break-even

The point at which total revenues equal total costs, resulting in no profit or loss.