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In: Economics

Redistribution of wealth, through tax and spending policies that aim to reduce economic inequalities. : True...

Redistribution of wealth, through tax and spending policies that aim to reduce economic inequalities.

: True False

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Expert Solution

The correct answer is: True.

Redistribution of wealth implies transferring income and wealth from some individuals (the relatively rich) to others (the relatiely poor) to increase social welfare. It can be done through fiscal policies like taxation and government spending. The government can raise revenue by taxing the rich people's wealth and income and then using that revenue to fund programmes that benefit the poor. These programmes may include measures like subsidized food, housing and health services. Therefore, redistribution of wealth aims at reducing the economic inequalities.

Rahul Sunny answered 1 year ago
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