What happens when the government attempts to cut the economic pie into more equal slices?

Question

Quizplus · Accepted Answer

When the government attempts to cut the economic pie into more equal slices, it often involves redistributive policies such as taxation and transfer payments. This can result in a decrease in incentives for individuals to work and invest, leading to a smaller overall economic pie. Additionally, it may lead to inefficiencies in resource allocation and a decrease in economic growth. As a result, there may be less pie available for everyone.

What Happens When the Government Attempts to Cut the Economic