Microeconomics FTW! Finish these two sentences...?

Question

1. Other things equal, a rapid rise in profits relative to other types of income would affect:

A) the functional distribution of income only.

B) the personal distribution of income only.

C) both the functional and personal distributions of income.

D) the relative size of the public sector.

2. Markets explained on the basis of supply and demand:

A) assume many buyers and many sellers of a standardized product.

B) assume market power so that buyers and sellers bargainn with one another.

C) do not exist in the real-world economy.

D) are approximated by markets in which a single seller determines price.

Answer 1

I have a BA in Economics.  I feel that 1. is A because the functional income is income earned by the owners of capital.  2. is also A.