CLEP Microeconomics Exam Prep

Answer - C - Income taxes are not an example of the government’s attempt to reduce national poverty.

Key Takeaway: There is a huge difference among income levels within the United States. In general, income flows in the United States in accordance to the work one does, what one creates, or how much one contributes. There are debates to whether or not this is fair. The government does try to keep all citizens above a very basic poverty threshold, however, with policies like welfare, Social Security, and minimum wage laws.