When the government enacts policies to make the distribution of income more equitable,it distorts incentives,alters behaviour,and makes the allocation of resources less efficient.

Question

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When the government imposes policies to redistribute income, it affects the incentives of both individuals and businesses. This can result in a change in behaviour and can make the allocation of resources less efficient as individuals and companies may not be incentivized to work as hard or invest as much in their businesses. This can lead to a decrease in economic growth and productivity.

When the Government Enacts Policies to Make the Distribution of Income