Question

How does public expenditure on social welfare programs affect income distribution?

• A. It helps to reduce income inequality.
• B. It tends to increase income inequality.
• C. It has no significant impact on income distribution.
• D. It primarily benefits high-income earners, worsening inequality.

Answer 1

Answer:

A. It helps to reduce income inequality.

• By providing services and benefits to the poor and vulnerable, social welfare spending acts as a redistributive tool to narrow the gap between the rich and the poor.