Asked by
Alexandra Thiebault
on Dec 12, 2024
Verified
Which of the following is true about income distribution?
A) During any given year, the size of the economic pie available for allocation to individuals is fixed.
B) When the link between worker productivity and reward is weakened, individuals have less incentive to create income.
C) If they reduce income inequality, taxes and income transfers will not alter the incentive of individuals to engage in productive activity.
D) The total output of an economy is unrelated to the distribution of income.
Income Distribution
The way in which total income is shared among individuals or groups of people in an economy.
Economic Pie
A metaphorical representation of the total amount of wealth or resources available within an economy, with its distribution among individuals or groups being a central economic concern.
- Comprehend the elements that lead to disparities in income.
- Investigate the influence of income allocation on individuals' inducements in a market economy.
Verified Answer
JZ
Learning Objectives
- Comprehend the elements that lead to disparities in income.
- Investigate the influence of income allocation on individuals' inducements in a market economy.