Explain how taxes and government expenditure can be used to influence distribution of income in the society.

Govt impose higher tax on rich and through this income create beneficiary policy for poor.The government implements such a policy in an economy when there exists a high degree of inequality in the income level of its population. using such a policy, government transfers purchasing power from rich to poor through its welfare schemes to attain equality in the income levels of its population.

discuss with example how government expenditure might illistrate the concept of opportunity cost