Distribution and Redistribution in Economics

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Questions and Answers

What is the essential function of a company in the context of production?

To minimize inequalities in the distribution of wealth
To produce market goods and services for profit (correct)
To ensure social justice through wealth redistribution
To distribute income equally among all economic agents

Why does the primary distribution of income always generate 'inequalities'?

Due to excessive state involvement in income distribution
Due to the absence of state intervention in wealth redistribution
Because the distribution rules are based on the nature and degree of participation in the production process (correct)
Because economic agents refuse to participate in the production process

What is one of the main functions of the state in the context of income distribution?

To maximize inequalities in income distribution
To correct the 'spontaneous' distribution of income through mechanisms promoting wealth redistribution (correct)
To minimize the role of the state in social balance
To avoid any intervention in wealth redistribution

What does Gross Domestic Product (GDP) measure?

The total market value of all final goods and services produced in a country (B) Signup and view all the answers

What is the primary function of companies in the context of production?

To generate wealth and value-added through the production of market goods and services (A) Signup and view all the answers

What is the main role of the state in the context of income distribution?

To correct the spontaneous distribution of income through mechanisms promoting redistribution of wealth (D) Signup and view all the answers

Why does the primary distribution of income always generate 'inequalities'?

Because it is based on the nature and degree of participation in the production process (A) Signup and view all the answers

What is the essential function of a company in the context of production?

To produce market goods and services intended to be transferred on the market at a price allowing them to make a profit (C) Signup and view all the answers