Asked by Schyler Molloy on Jul 20, 2024
Verified
Which of the following statements is true?
A) When the forces of supply and demand determine for whom goods are produced in a society,an equitable distribution of income will naturally result.
B) An external cost will occur when some of the benefits derived from production of some good or service are enjoyed by a third party.
C) One of the roles of our government is to transfer some income from the rich and the middle class to the poor.
D) According to most economists' definition of competition,the American economy is very competitive.
External Cost
Costs incurred by a third party who did not agree to the action causing the cost, typically associated with environmental, health, and social impacts.
Equitable Distribution
The fair and impartial division of resources or wealth among all members of a society.
Government Role
The responsibilities and activities undertaken by a government, including the creation and enforcement of laws, economic regulation, and public services.
- Grasp the role and impact of government interventions in the economy, including taxation, regulation, and provision of public goods and services.
- Recognize the effects of economic policies and systems on social welfare and income distribution.
Verified Answer
Learning Objectives
- Grasp the role and impact of government interventions in the economy, including taxation, regulation, and provision of public goods and services.
- Recognize the effects of economic policies and systems on social welfare and income distribution.
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