Which of the following is true concerning the distribution of income?
a. Various measures of income inequality can be used to objectively determine the fairness of an income distribution.
b. When the political process is democratic, income transfer programs will redistribute income from the rich to the poor.
c. The fairness of an income distribution is a normative concept; it cannot be determined objectively by economic criteria.
d. Income inequality is the fairest method to allocate income.
C
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One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People's Republic of China is
A) China's larger stock of capital. B) the higher capital/labor ratio in China. C) the higher capital/labor ratio in the U.S. D) China's smaller stock of fossil fuels. E) the fact that much labor in the U.S. is in management.
In the petroleum industry, proved reserves are
a. evidence that uncertainty is not a problem in the industry. b. inevitably growing smaller over time. c. the same thing as the current supply of petroleum. d. resources recoverable at current prices and technology.