A government's policy of redistributing income makes the income distribution

A) more equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
B) more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.
C) less equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
D) less equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Question

Annais Flores · Accepted Answer

Final Answer : B, Explanation :  Income redistribution policies aim to make income distribution more equal but can distort incentives and alter behavior, often leading to a less efficient allocation of resources due to potential reduced incentives for productivity and innovation.

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