How Does Politics Matter for the Level of Inequality in the United

question 48

Multiple Choice

How does politics matter for the level of inequality in the United States?

• A) The U.S. political system is fragmented, making it difficult to establish a comprehensive safety net.
• B) The welfare state in the United States is more developed than in European countries.
• C) Capitalist institutions make it possible to maintain low levels of inequality.
• D) The lack of a feudal history makes inequality less of an issue in the United States.

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Definitions:

Indirect Materials

Materials used in the production process that cannot be easily traced to specific products, such as lubricants and cleaning supplies.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Manufacturing Overhead

Includes all manufacturing costs other than direct materials and direct labor, encompassing expenses such as depreciation, electricity, and maintenance of factory facilities.

Cost of Goods Sold

The total cost directly associated with producing goods that have been sold, including materials, labor, and overhead costs.