Which Outcome Do Government Programs That Take Money from High-Income

question 30

Multiple Choice

Which outcome do government programs that take money from high-income people to give it to low-income people typically achieve

• A)They improve economic efficiency by reducing poverty.
• B)They reduce economic efficiency because they distort incentives.
• C)They improve economic efficiency by redistributing income.
• D)They reduce economic efficiency because they reduce equity.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Capital

Resources made and used by humans to produce goods and services, including buildings, machinery, and equipment.

Barriers to Entry

Obstacles that prevent new competitors from easily entering an industry or area of business.

Industry Structure

The characteristics that influence the nature of competition and pricing in a particular industry, including the number and size of firms, entry barriers, and product differentiation.