Policies That Redistribute Income

question 71

Multiple Choice

Policies that redistribute income

• A)reduce the rewards of high-income earners.
• B)raise the rewards of low-income earners.
• C)reduce the incentive to earn high income.
• D)All of the above are correct.

---

Definitions:

Cheesecake

A sweet dessert consisting of one or more layers, the main, and thickest layer contains a mixture of soft, fresh cheese, eggs, and sugar.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity demanded, leading to a stable market condition.

Consumer Surplus

The variation between the total value consumers can and will offer for a good or service and the amount they actually expend.

White Water Rafting

An adventurous outdoor activity which involves navigating rivers with varying degrees of rough water in a raft.