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Resources Employed to Persuade Government to Redistribute Income and Wealth

Question 98

Multiple Choice

Resources employed to persuade government to redistribute income and wealth to special interests are:​


A) unproductive because they do nothing to increase total output and usually end up reducing it.
B) productive as they are required to increase total output.
C) efficient as the marginal cost of producing a unit exceeds the marginal benefit to the society.
D) inefficient because the distribution of resources among alternative uses does not match consumer taste.
E) unproductive because they raises the price level in the economy.

Correct Answer:

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