Government uses all of the following ways to redistribute income, except
Answer Details
The government uses various methods to redistribute income in society. Three of these ways are market intervention, transfer earnings, and taxation.
Market intervention involves the government stepping in and regulating certain aspects of the economy to ensure fairness and reduce income inequality. For example, the government may set a minimum wage so that workers are guaranteed a certain level of income.
Transfer earnings refer to government programs that provide financial assistance to individuals or families who are in need. These programs include welfare, unemployment benefits, and social security. The goal is to provide support to those who may have lower incomes or are facing financial difficulties.
Taxation is another method used by the government to redistribute income. Through taxes, the government collects money from individuals and businesses based on their income or profits. This revenue is then used to fund public services such as healthcare, education, infrastructure, and social programs.
However, the answer to the question is that the government does not use limited liability as a way to redistribute income. Limited liability is a legal concept that protects individuals from being personally liable for the debts and liabilities of a company. It is not directly related to income redistribution.
In summary, the government redistributes income through market intervention, transfer earnings, and taxation. These methods aim to promote fairness and provide support to those in need. However, limited liability is not a method used for income redistribution.