Which of the Following Is True

Multiple Choice

Which of the following is true?

A) There is a fixed size of economic pie available for the government to allocate among individuals.
B) In a market economy, the link between productivity and income provides individuals with an incentive to provide resources that are highly valued by others.
C) Taxes and transfers do not affect the amount of income that is created.
D) How income is distributed exerts little impact on the total amount of income generated.