When the government redistributes income from the wealthy to the poor,
A)efficiency is improved, but equality is not.
B)both wealthy people and poor people benefit directly.
C)people work less and produce fewer goods and services.
D)the government collects more revenue in total.

Question

Quizplus · Accepted Answer

Redistributing income from the wealthy to the poor can lead to decreased incentives for both groups to work hard. Wealthy individuals may work less because a larger portion of their income is taken away, while poor individuals may work less because they receive income without needing to work for it. This can result in a decrease in overall productivity and the production of fewer goods and services.

When the Government Redistributes Income from the Wealthy to the Poor