When a government policy alters the distribution of income to achieve greater income equality,which of the following will happen?

Question

Quizplus · Accepted Answer

When a government policy alters the distribution of income to achieve greater income equality, all of the above are likely to happen. 
A) Incentives for earning income may be distorted, as individuals may see less benefit from working harder or taking on higher-paying jobs if the additional income is heavily taxed or redistributed. 
B) Consumers may alter their behavior in response to the policy, such as choosing to work less or spend less if their income is reduced through redistribution. 
C) The new allocation of resources may be less efficient than the pre-policy allocation because resources may not be allocated based on individual preferences or the efficient use of resources, but rather based on government mandates or redistribution efforts.

When a Government Policy Alters the Distribution of Income to Achieve