Regarding Income Distribution, Which of the Following Is True

Multiple Choice

Regarding income distribution, which of the following is true?

A) The close link between personal income and provision of productive resources to others provides individuals with a strong incentive to develop skills.
B) Income can be taxed away from some and transferred to others without altering the incentive to engage in productive activities.
C) Holding technology constant, the size of the economic pie available for distribution among economic participants is fixed.
D) In a democratic setting, the government's tax and spending policies can redistribute income without influencing the size of the economic pie.
E) Both b and d are correct.