Which of the Following Is an Example of a Positive

question 63

Multiple Choice

Which of the following is an example of a positive economic statement?

• A)The distribution of income in the United States should be more equal.
• B)The after-tax distribution of income is more equal than the pre-tax distribution of income.
• C)The tax system should be more progressive so that the after-tax distribution of income can be more equal.
• D)The government should not be involved in the income redistribution schemes.

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Definitions:

Recording

The process of documenting financial transactions in the accounting records of a business.

Consolidation Entry A

An accounting entry made to adjust or combine financial information from separate entities during consolidation.

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements that helps in adjusting and combining the financial information of parent and subsidiary entities.

Purpose

The objective or intended outcome that an organization or plan is meant to achieve.