There is no final exam.

Remember to turn in issue-paper #4 before the deadline published at the bottom of your 15 Module Calendar.   

 19.3    Explain why governments redistribute income and describe the effects of redistribution on economic inequality and poverty.

 19.3    Explain why governments redistribute income and describe the effects of redistribution on economic inequality and poverty.

A.  Governments redistribute income through income taxes, income maintenance programs, and provision of subsidized services.
B.  Income taxes are progressive.
C.  Redistribution creates a big tradeoff between equity and efficiency, which arises because the process of redistribution uses resources and weakens incentives to work and save.
D.  Traditional income maintenance programs create a welfare trap that discourages work, so poverty is persistent.  Reforms seek to lessen the severity of the welfare trap.  A more radical negative income tax reform would encourage those on welfare to find work but would increase the taxes on low-income workers.

Take the optional post-study bonus point quizzes on Inequality and Poverty on Saturday following Module 14.

Module 15 will be a review session and an exam over modules 11 through 14. 

You should turn in your third issue-paper when you take Exam #3.

Finalize your notes for use during Exam #3.

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