Question

A farmer raises wheat and pays a portion of it as a tax that is collected by government agents and sent to a central storage facility. Government agents and their families consume some of the wheat. The remaining wheat is portioned out to people living in villages and on farms. The original farmer does not get back as much wheat as he paid in, but he does get some benefit. This is an example of:______

Answer 1

Answer: redistribution

                                         

Explanation: In simple words, redistribution refers to the process in which something is distributed in way to achieve a specific objective like equality etc.

In other words, it can be seen as transfer of wealth or resources from one section of the society to the other sections. Redistribution is  performed by governments of the country and is implemented using tools such as taxes, charity and public services etc.

Hence from the above we can conclude that the given example depcits redistribution.