When the Government Enacts Policies to Redistribute Income

question 235

Multiple Choice

When the government enacts policies to redistribute income,

• A)the objective is to enhance efficiency and a side effect is that the allocation of resources becomes more equal.
• B)the objective is to enhance efficiency and a side effect is that the allocation of resources becomes less equal.
• C)the objective is to enhance equality and a side effect is that the allocation of resources becomes more efficient.
• D)the objective is to enhance equality and a side effect is that the allocation of resources becomes less efficient.

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Definitions:

Private Corporations

Companies that are owned by a small group of individuals and do not offer their shares of stock to the general public.

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada.

Mortgage Payable

A liability representing money owed on a long-term loan used to purchase property, typically secured by the property itself.

Financing Activities

Transactions related to raising capital and repaying shareholders, including issuing equity, obtaining loans, and paying dividends.