Your textbook argues that the phrase "the distribution of income" is misleading because
A) income is not created in a market economy, only wealth is.
B) it suggests that income is not earned in process of its creation and can simply be parceled out any which way policymakers wish.
C) income in the form of wages and salaries can be negative, and therefore cannot be distributed.
D) it is only related to ethical rather than economic considerations.
B
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Saving time by driving faster is an example of a ________ of driving faster. Increasing the severity of injuries from a potential accident due to driving faster is a(n) ________ of driving faster
A) nominal cost; real cost B) normative benefit; opportunity cost C) marginal benefit; marginal cost D) marginal cost; nominal cost
The opportunity cost of holding money increases when
A) the purchasing power of money rises. B) the nominal interest rate rises. C) the price level falls. D) consumers' real incomes increase.
Suppose Sam's Shoe Co. makes one kind of shoe. An example of a fixed cost for this company would be:
A. the lease for the factory building. B. the leather needed to make the shoes. C. the needles for the sewing machines that need to be replaced after sewing every 1,000 pairs. D. All of these are examples of fixed costs.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.