Answer to Question #206056 in Economics for Nonhlanhla

Question

True/false: The distribution function of government refers to the government promoting efficiency by implementing legislation to ensure certain minimum standards.

Answer 1

The government transfer payments from one citizen to other through taxation policy. Through these programs, the government provides income support to those individuals who do not have any source of earnings. Government intervention can increase economic efficiency when market failures or externalities exist.

So, the statement is false.