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Looking at the Results of Government Income Redistribution Programs, We

Question 47

Multiple Choice

Looking at the results of government income redistribution programs, we expect to find that the income received by the

A) lowest 20 per cent decreases because of government taxes, and the income received by the highest 20 per cent increases because of government subsidies.
B) lowest 20 per cent increases somewhat, but the income received by the next 20 per cent increases the most.
C) highest 20 per cent is left unaffected because they are able to shelter income from taxes.
D) lowest 20 per cent increases, and the income received by the highest 20 per cent decreases.
E) lowest 20 per cent of households is almost unchanged because most don't work.

Correct Answer: