The World View article in the text titled "Income Share of the Rich" reports,"In poor,developing countries the richest tenth of the population typically gets 40 to 50 percent of all income." Which of the following is a form of government intervention designed to change this situation?
A)Antitrust laws.
B)Spillover costs.
C)Laissez faire.
D)Rich nations opening up their domestic markets to exports from poor nations.

Question

Quizplus · Accepted Answer

Rich nations opening up their domestic markets to exports from poor nations can promote economic growth and reduce income inequality in poor, developing countries by creating opportunities for their businesses and workers to access larger markets and generate more income. This can help to increase the income share of the poor and reduce the income share of the rich. Antitrust laws aim to promote fair competition and prevent monopolies, and spillover costs refer to the external costs that are imposed on society as a result of economic activities. Laissez-faire is a hands-off approach that allows the market to operate with minimal government intervention.

The World View Article in the Text Titled "Income Share