Which term describes policies that aim to reduce income inequality by transferring wealth from the rich to the poor?

• A. Equal opportunities
• B. Redistribution of wealth
• C. Poverty line
• D. Relative poverty

Answer: (B)

Redistribution of wealth is about changing how income is spread across society. Policies such as progressive taxation, welfare transfers, and publicly funded services move resources from wealthier individuals to poorer ones with the aim of narrowing income differences. This directly tackles inequality by altering the distribution of income, rather than just expanding opportunities or measuring poverty. Equal opportunities focuses on giving everyone the same chances to succeed but doesn’t, by itself, transfer wealth. The poverty line is a threshold used to define who is considered poor, not a policy. Relative poverty is a way of measuring poverty in relation to the rest of society, not a policy tool.