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A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2017 · Q161 Mark

What is the most likely purpose of a government making transfer payments, such as social security benefits, to unemployed workers?

Ato encourage a change in income distribution
Bto increase the government's revenue
Cto keep the principles of a free market economy
Dto let all citizens enjoy identical living standards

✓ Correct answer

A: to encourage a change in income distribution

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2017 Paper 1 Variant 2, question 16.

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