One of the factors that causes differences in income distribution across countries is:

Question

Quizplus · Accepted Answer

The extent to which governments redistribute income through the public budget significantly affects income distribution across countries. This is because government policies on taxation and social welfare can either narrow or widen the gap between the rich and the poor. Redistribution mechanisms like progressive taxation and social spending are key tools for adjusting income distribution.

One of the Factors That Causes Differences in Income Distribution