Which term best describes the process by which money is reallocated among segments of society to assist those in need?

• A. Price discrimination
• B. Product differentiation
• C. Market equilibrium
• D. Income redistribution

Answer: (D)

Verified step by step guidance

1. Understand the key concept in the question: it asks about the process where money is reallocated among different segments of society to help those in need.
2. Recall the definitions of the given terms: Price discrimination refers to charging different prices to different consumers for the same product; Product differentiation involves making a product distinct from others; Market equilibrium is the state where supply equals demand.
3. Identify that none of these terms describe the transfer of money to assist those in need, which is a social or economic policy concept rather than a market mechanism.
4. Recognize that the term 'Income redistribution' specifically refers to the process by which wealth or income is transferred from certain groups to others, typically through taxation and welfare programs, to reduce economic inequality.
5. Conclude that the best term describing the process of reallocating money among society to assist those in need is 'Income redistribution'.