A Cause of the Unequal Distribution of Income in the United

question 151

Multiple Choice

A cause of the unequal distribution of income in the United States is:

• A) differences in preferences and risks.
• B) differences in noncash transfers.
• C) high expenditures for social insurance.
• D) a low benefit-reduction rate for income.

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Definitions:

Finances

The management of large amounts of money, especially by governments or large companies, including acquiring, investing, and managing funds.

Profitable

Refers to the ability of a business or activity to generate more income than expenses, resulting in a financial gain.

Breakthrough Stage

A phase in development where significant and sudden progress or advance is made in understanding or innovation.

Entrepreneurial Firms

Companies that pursue opportunities, regardless of the resources they currently control, characterized by innovation, risk-taking, and proactiveness.