Multiple Choice
The ________ explains that the redistribution of income occurs because ________.
A) median voter theory; a political party is more likely to retain power by enacting laws that make its supporters as well off as possible
B) utilitarian theory; the big tradeoff favors efficiency
C) excess burden theory; utilitarianism favors equality over efficiency
D) Lorenz curve; the lowest quintile of households receives the smallest level of benefits
E) progressive tax theory; higher taxes are best at equalizing income
Correct Answer:
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