Question

The distribution of income within the borders of a hypothetical country has begun troubling members of Congress. Specifically, the members of Congress are concerned that a very small minority commands a large portion of the country's total GDP. Which of the following methods might the government use to redistribute income from the high-income earners to lower-income earners?(1 point)

food stamps

government-provided housing

Social Security payments

Answer 1

All three. Food stamps and government-provided housing are in-kind transfer programs that directly benefit lower-income households, and Social Security is a transfer program (funded by payroll taxes) that redistributes income across age and income groups.