Suppose the government proposes a program that will transfer income from one group to another.The goal of this government intervention in the marketplace is best characterized as:
A) redistribution.
B) increasing market efficiency.
C) correcting a market failure.
D) achieving competitive equilibrium.

Question

Quizplus · Accepted Answer

The government's program is aimed at transferring income from one group to another, which is a clear indication of redistribution of resources within the economy. The objective of such an intervention in the market is to achieve a fairer distribution of income and wealth, which is one of the key goals of government economic policy. Therefore, choice A) is the best answer. Choices B), C), and D) may have other explicit or implicit goals of government intervention in the market, but they are not the most appropriate in this particular case.

Suppose the Government Proposes a Program That Will Transfer Income