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Which of the Following Is True About Income Distribution

Question 103

Multiple Choice

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.

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