Government uses all of the following ways to redistribute in…

JAMB Economics 2023 187 views
Source: JAMB · 2023

Government uses all of the following ways to redistribute income, except

  1. Transfer earnings
  2. Market intervention
  3. Limited liability ✓
  4. Taxation
Explanation

Government redistributes income through taxation, transfer payments such as pensions and grants, and market intervention such as minimum wages.

Limited liability is a company law rule. It limits what shareholders can lose if the company fails. It does not move income between groups.

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