The concept of 'Pre-distribution' in policy debates refers to:
A. Only monetary policy
B. Policies that shape the distribution of market incomes before taxes and transfers, such as education, minimum wages and competition policy
C. Only post-tax outcomes
D. Only redistribution through taxes and transfers
Answer: Option B
Solution (By JKSSB Mock Tests)
Pre-distribution emphasises interventions that affect the underlying distribution of market incomes—through skills, bargaining power, market structure and institutions—rather than relying solely on subsequent fiscal redistribution.
Explanation:
Developing countries face difficulties in measuring national income due to a large non-monetised (barter) sector, informal activities, lack of reliable data and underreporting.
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