A Likely Effect of Government Policies That Redistribute Income and Wealth

question 133

Multiple Choice

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

• A)enhance equality.
• B)enhance efficiency.
• C)increase the reward for working hard.
• D)All of the above are correct.

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Definitions:

Dividends Received

Income received by investors, typically shareholders of a corporation, from the profits of the company.

Investee

A company in which another entity has invested, granting the investor a level of influence or control over its operations.

Related Expense

Costs that are directly connected to or a result of a specific business activity or operation.

Subsidiary Contract

An agreement or contract involving a company that is controlled by another parent company.