Economic Performance Unit Test

12 of 1812 of 18 Items

Question
Which of the following policies might a government use to redistribute income from high-income earners to low-income earners?(1 point)
Responses

food stamps
food stamps

prescription drug coverage
prescription drug coverage

negative income tax
negative income tax

free and reduced school lunches

1 answer

The policy that a government might use to redistribute income from high-income earners to low-income earners among the options provided is the negative income tax.

A negative income tax is a system in which individuals earning below a certain threshold receive supplemental pay from the government instead of paying taxes, effectively transferring wealth from higher-income earners to lower-income earners.

While food stamps, prescription drug coverage, and free and reduced school lunches can also assist low-income individuals, they are not direct methods of income redistribution in the same way as a negative income tax.

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