Asked by Lucas Castro on Jun 17, 2024
Verified
When taxes and transfer payments are taken into account, the distribution of income in the United States
A) is unchanged.
B) is less equally distributed.
C) is more equally distributed.
D) becomes more beneficial for the wealthy.
Transfer Payments
Money distributed from one entity to another without an exchange of goods or services, e.g., social security benefits.
Distribution Of Income
The way in which a nation’s total income is distributed among its population, affecting economic disparity and wealth distribution.
- Comprehend how taxation and transfers influence the distribution of income and disparities.
Verified Answer
JC
Jenai CoombsJun 24, 2024
Final Answer :
C
Explanation :
Taxes and transfer payments (like social security, unemployment benefits, etc.) are designed to redistribute income from wealthier individuals to those with lower incomes, making the overall distribution of income more equal.
Learning Objectives
- Comprehend how taxation and transfers influence the distribution of income and disparities.
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