A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies
A)enhance equity.
B)reduce efficiency.
C)reduce the reward for working hard.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Redistribution policies aim to enhance equity by reducing income inequality, but they may also reduce efficiency by distorting incentives and potentially reducing the reward for working hard, as they can lead to higher taxes on the wealthy and reduced motivation for high earners.

A Likely Effect of Government Policies That Redistribute Income and Wealth