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Compensation to __ is the largest share of national income.Multiple choice question.corporate executivesworkersshareholderstransfer payment recipients

Question

Compensation to __ is the largest share of national income.

Multiple choice question.

  • corporate executives
  • workers
  • shareholders
  • transfer payment recipients
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Solution

To determine which group receives the largest share of national income, let's analyze the options provided:

  1. Corporate Executives: They receive a significant amount in the form of salaries, bonuses, and stock options, but they do not represent the majority of income recipients.

  2. Workers: This category includes all employees across various industries and sectors, and together they typically earn a substantial portion of the national income through wages and salaries.

  3. Shareholders: They earn income through dividends and appreciation of stock value. However, this income is dependent on corporate profits, which can fluctuate.

  4. Transfer Payment Recipients: This group includes individuals who receive government aid such as social security, unemployment benefits, and welfare. While they receive money, it usually does not constitute a large share of national income compared to the earnings from work.

Conclusion

Considering the above analysis, the largest share of national income typically goes to workers due to the cumulative nature of wages paid to all employees across the economy. Thus, the correct answer is workers.

This problem has been solved

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