Which of the following programs would redistribute consumer surplus in favor of those with less surplus in an otherwise free market economy?
A) Providing welfare payments to the poor that are paid for by income taxes
B) Enforcing existing property rights
C) Ensuring that the market results in an efficient outcome
D) Eliminating estate taxes

Question

Quizplus · Accepted Answer

Providing welfare payments to the poor funded by income taxes redistributes consumer surplus by transferring resources from wealthier individuals to those with less, thereby increasing the surplus for those with less in a free market economy.

Which of the Following Programs Would Redistribute Consumer Surplus in Favor