Governments can improve efficiency in an economy by intervening when the richest companies are not paying enough out to shareholders

Question

Quizplus · Accepted Answer

Governments generally do not intervene in the distribution of dividends by companies. The decision to pay dividends is made by the board of directors and is based on various factors such as the company's profitability and growth prospects. Governments may impose regulations for transparency and good governance, but they do not typically intervene in the dividend policies of companies. Improving efficiency in an economy involves addressing various factors such as infrastructure, education, innovation, and competition, and not just the distribution of dividends.

Governments Can Improve Efficiency in an Economy by Intervening When