When the government redistributes income with taxes and welfare, the economy becomes more efficient.?

Question

a. True
b. False

Answer 1

B. false.
In general, the longer a dollar stays in the private scetor, the more it grows. Past Keynsian theory has shown that government spending on the military or public works can give a temporary boost and inject revenue feedback. Welfare has a zero or slightly negative feedback.
Modern dynamic or macroeconomic historical data has proven the benefits of money in the private sector.
See:
The Impact of Government Spending on Economic Growth
by Daniel J. Mitchell, Ph.D.
Backgrounder #1831 http://www.heritage.org/Research/Budget/bg1831.cfm
March 15, 2005
and
How to Measure the Revenue Impact of Changes in Tax Rates
by Daniel J. Mitchell, Ph.D. http://www.heritage.org/Research/Taxes/BG1090.cfm
Backgrounder #1090 August 9, 1996
and
ECONOMICS IN ONE LESSON

http://www.mises.org/books/onelesson.pdf

Answer 2

The answer depends on your teacher point of view.

True if you consider the heath and quality of workforce key to economic growth and prosperity.

False if efficiency is defined by neoclassical economic theory.

Answer 3

False

If you take all the wealth earned by people who create new business and inventions and give it to those who do nothing the creative people see no personal benefit in continuing to create.

Maybe you are to young to remember the Soviet Union... it was a dismal place.

Answer 4

False

the economy becomes disco-ordinated.