When the federal government collects a portion of our wages as taxes and then returns that money in the form of national security, roads, education, and other goods and services to its citizens, it is demonstrating which type of economic exchange?

Question

Quizplus · Accepted Answer

Redistribution refers to the transfer of wealth or income from some individuals to others with the goal of achieving greater social equality. In this case, the government collects taxes from its citizens and redistributes them in the form of services and goods to promote the common good.

When the Federal Government Collects a Portion of Our Wages