When the government redistributes income from the wealthy to the poor,
A)efficiency is improved, but equity is not.
B)both wealthy people and poor people benefit directly.
C)people work less and produce fewer goods and services.
D)wealthy people consume fewer goods, but poor people consume more goods, resulting in no real change.

Question

Quizplus · Accepted Answer

Redistributing income can reduce the incentive for both wealthy and poor individuals to work, potentially leading to a decrease in overall productivity and fewer goods and services being produced.

When the Government Redistributes Income from the Wealthy to the Poor