Question
Which of the following policies might a government use to redistribute income from high-income earners to low-income earners?
A. Prescription drug coverage
B. Negative income tax
C. Food stamps
D. Free and reduced school lunch
A. Prescription drug coverage
B. Negative income tax
C. Food stamps
D. Free and reduced school lunch
Answers
GPT-4o mini
All of the options listed can be considered policies that help redistribute income or support low-income earners, but some are more direct in their objective of income redistribution.
Here's a brief overview of each option:
A. **Prescription drug coverage** - This can help low-income individuals afford necessary medications, but it's not primarily aimed at income redistribution.
B. **Negative income tax** - This is a direct method of income redistribution, as it provides payments to individuals or families with an income below a certain level, effectively transferring income from higher earners to lower earners.
C. **Food stamps** - This program provides assistance to low-income individuals and families to ensure they can afford sufficient food, which also represents a form of income redistribution.
D. **Free and reduced school lunch** - This program provides meals to students from low-income families, helping to alleviate food insecurity and support families with limited financial resources, which can be viewed as a part of income redistribution efforts.
Among these, **B. Negative income tax** is the most direct method aimed specifically at redistributing income from high-income earners to low-income earners. However, options C and D also play a significant role in supporting lower-income individuals and families.
Here's a brief overview of each option:
A. **Prescription drug coverage** - This can help low-income individuals afford necessary medications, but it's not primarily aimed at income redistribution.
B. **Negative income tax** - This is a direct method of income redistribution, as it provides payments to individuals or families with an income below a certain level, effectively transferring income from higher earners to lower earners.
C. **Food stamps** - This program provides assistance to low-income individuals and families to ensure they can afford sufficient food, which also represents a form of income redistribution.
D. **Free and reduced school lunch** - This program provides meals to students from low-income families, helping to alleviate food insecurity and support families with limited financial resources, which can be viewed as a part of income redistribution efforts.
Among these, **B. Negative income tax** is the most direct method aimed specifically at redistributing income from high-income earners to low-income earners. However, options C and D also play a significant role in supporting lower-income individuals and families.