Which term best describes a policy that aims to benefit a broad group of people by providing subsidies or transfers?

• A. Distributive policy
• B. Regulatory policy
• C. Redistributive policy
• D. Allocative policy

Answer: (A)

Distributive policy describes spreading benefits across a broad group of people by providing subsidies or transfers that reach many individuals. This framing fits a policy meant to help a wide segment of the population rather than targeting a single industry or a specific recipient. In contrast, regulatory policy is about rules and standards that govern behavior, not distributing subsidies. Redistributive policy focuses on moving resources from one group to another to reduce inequality, which involves shifts between groups rather than simply broad distribution. Allocative policy targets benefits to a specific group or sector rather than to a wide audience. So a policy aiming to benefit a broad group through subsidies or transfers best aligns with distributive policy.