When government redistributes income,one dollar collected from a rich person translates into ________ received by a poor person.

Question

Quizplus · Accepted Answer

When the government redistributes income, some of the money collected from the rich person goes towards the cost of administering the program, meaning less than one dollar is received by the poor person. Additionally, there may be inefficiencies and disincentives associated with redistribution that can further reduce the amount that the poor person ultimately receives.

When Government Redistributes Income,one Dollar Collected from a Rich Person