What happens when government policies such as the welfare system try to help the neediest members of society?
A) It increases equity and reduces efficiency.
B) It reduces charitable contributions in an economy.
C) It increases the productivity of the needy in society.
D) It causes market failure to occur.

Question

Quizplus · Accepted Answer

Welfare policies increase equity by providing assistance to the neediest members of society. However, this often comes at the cost of reduced efficiency, as it can create a disincentive for recipients to work or seek higher-paying employment. This can lead to a reduction in overall economic output and productivity. Additionally, welfare policies can create a burden on taxpayers, further reducing efficiency.

What Happens When Government Policies Such as the Welfare System