Author Question: How do taxes and government cash transfer payments alter the measured distribution of income? a. ... (Read 101 times)

urbanoutfitters · **on:** Jun 30, 2018

How do taxes and government cash transfer payments alter the measured distribution of income?
a. Taxes, because they are included in the official data on income distribution, are reflected in the data, but cash transfer payments, which redistribute income to lower income households, are not included.
b. Cash transfer payments are included in the official data on income distribution, but taxes are not.
c. Both taxes and cash transfer payments are included in the official data on income distribution
d. Neither taxes or cash transfer payments are included in the official data on income distribution

Question 2

What is the maximum amount an investor should be willing to pay for a two-year 200 annuity, if the best alternative investment earns 20 percent per annum?
a. 305.56
b. 166.67
c. 138.89
d. 268.79