When the government attempts to improve equality in an economy the result is often
A)an increase in overall output in the economy.
B)additional government revenue since overall income will increase.
C)a reduction in equality.
D)a reduction in efficiency.

Question

Quizplus · Accepted Answer

When the government attempts to improve equality in an economy through redistributive policies such as progressive taxation or welfare programs, the result is often a reduction in efficiency. This is because such policies often lead to a decrease in the incentives for people to work hard and innovate, causing a decrease in overall productivity and output. Additionally, these policies may also lead to unintended consequences such as increased government debt or disincentives for businesses to invest and create jobs.

When the Government Attempts to Improve Equality in an Economy