Which of the following is true?
a. Taxes and transfers generally increase the income share of the bottom quintile of income recipients, while reducing the share of the top group of earners.
b. In a market economy, the distribution of income is determined by the quantity and value of the resources supplied by the various individuals, and nearly half the value of resources owned by the rich was inherited.
c. Between 1980 and 2009, the income share received by the highest quintile of earners fell, while the share received by the bottom quintile of earners rose.
d. All of the above are true.
A
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The Board of Governors of the Federal Reserve System does NOT
A) consist of seven members with fourteen-year terms. B) include the presidents of the twelve Federal Reserve Banks. C) utilize a system of rotations so that a position comes open every two years. D) consist of members whose appointments have been approved by the Senate.
Economies of scale will create a barrier to entry in an oligopoly industry when
A) a firm's minimum efficient scale occurs where long-run average total costs are constant. B) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a small fraction of total industry sales. C) the industry's four-firm concentration ratio is less than 40 percent. D) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a large fraction of total industry sales.