Question

When the government redistributes income from the wealthy to the poor, A. efficiency is improved, but equality is not. B. equality is improved, but efficiency is not. C. both efficiency and equality are improved. D. neither efficiency nor equality are improved.

Answer 1

B. equality is improved, but efficiency is not.

Step-by-step explanation:

With this, high redistribution reduces trading efficiency, but not as much as predicted if market participants trade randomly.