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.

---

Definitions:

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product or service, regardless of demand differences.

Marginal Revenue

The additional income that an organization receives from selling one more unit of a good or service.

Output

The total amount of goods or services produced by a company, industry, or economy over a certain period.

Elastic Range

The segment of a demand curve where any change in price leads to a more than proportionate change in the quantity demanded.