When the government redistributes income, one dollar collected from a rich person translates into ________ received by a poor person.

Question

Quizplus · Accepted Answer

When the government redistributes income, there are administrative costs associated with collecting and distributing the funds. Therefore, the amount received by the poor person will be less than the amount collected from the rich person. This means that less than one dollar will be received by a poor person for every dollar collected from a rich person.

When the Government Redistributes Income, One Dollar Collected from a Rich