Redistribution Through the Public Sector Tends to Lower Economic Prosperity

question 46

Multiple Choice

Redistribution through the public sector tends to lower economic prosperity because

• A) it weakens the link between productive activity and the reward derived from it.
• B) it encourages resources to flow into wasteful rent-seeking activities.
• C) the higher tax rates required to finance redistribution result in resources being devoted toward tax avoidance activities.
• D) all of the above are true.

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Definitions:

Probability

A quantification between 0 and 1, showing the chances of an event's occurrence.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Number of Children

A count of offspring or children associated with a person, family, or population within a certain context.

Poisson Distribution

A statistical distribution showing the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events happen with a known constant mean rate and independently of the time since the last event.