Income redistribution in a mixed economy
A)risks reducing individual incentives to work and produce.
B)is only accomplished through government intervention.
C)is supported by all individuals.
D)is not allowed.
E)rarely occurs.

Question

Quizplus · Accepted Answer

Income redistribution involves taking wealth from those who have higher incomes and distributing it to those with lower incomes. This can reduce individual incentives to work and produce, as people may feel less motivated to work hard if they know that their income will be taken away and given to others. In a mixed economy, this redistribution is typically achieved through government intervention, such as through progressive taxation or social welfare programs. However, not all individuals support income redistribution, and it is not allowed in some societies. While income redistribution may occur, it is not a guaranteed outcome of a mixed economy.

Income Redistribution in a Mixed Economy