Economics Mixed Economy Questions
A mixed economy addresses income redistribution through various mechanisms such as progressive taxation, social welfare programs, and government regulations. Progressive taxation involves imposing higher tax rates on individuals with higher incomes, thereby redistributing wealth from the rich to the poor. Social welfare programs provide financial assistance, healthcare, and other benefits to low-income individuals and families, aiming to reduce income inequality. Government regulations ensure fair competition and prevent monopolies, which can contribute to income redistribution by promoting a more equitable distribution of wealth. Overall, a mixed economy seeks to balance market forces with government intervention to achieve a more equitable distribution of income.