Which of the Following Is True About the Income-Transfer System

question 14

Multiple Choice

Which of the following is true about the income-transfer system in the United States?

• A) The system provides more output for lower-income households than the market alone provides.
• B) Transfer payments solve the problem of income inequality.
• C) The system does not affect the distribution of income because of regressive taxes.
• D) The system is actually progressive and gives more income to rich households.

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Definitions:

Psychomotor Retardation

A significant slowing-down of thought and a reduction of physical movements in an individual, often observed in major depressive disorder.

Psychomotor Agitation

A condition characterized by increased physical and emotional tension, often manifesting in restless and repetitive movements.

Psychomotor Atrophy

The deterioration of cognitive, emotional, and physical abilities due to underutilization or neuron degeneration.

Psychotic

Relating to psychosis, a mental disorder characterized by a disconnection from reality, which may include hallucinations and delusions.