Which of the Following Statements Is True

question 181

Multiple Choice

Which of the following statements is true?

• A)If transfer payments such as Social Security payments to the retired and disabled were excluded from official statistics used to estimate the percentage of people with incomes below the poverty line, the amount of poverty in the United States would be much greater.
• B)Because the federal income tax system is progressive, measuring poverty using after-tax incomes results in a higher poverty rate than if poverty is measured using before-tax incomes.
• C)If non-cash benefits such as food stamps and rent subsidies were added to the incomes of low-income families, poverty would be eliminated.
• D)In the United States, income remaining after federal taxes are paid is more equally distributed than income before taxes.

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Definitions:

Cost of Goods Sold

the direct costs tied to the production of goods sold by a company, including both raw material costs and labor costs.

Net Sales

The total revenue a company earns after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Nonoperating Income

Income derived from activities not related to a company's core business operations, such as investment income or gains from the sale of assets.

Operating Expenses

Costs related to the day-to-day operations of a business, such as rent, utilities, and payroll.