Why does redistribution, so that the distribution of income is equal, bring about less total output?
A) Incentives to work are reduced.
B) No one can determine marginal benefit or marginal cost as a result.
C) Those in political power will likely receive a larger income.
D) Because the marginal benefit and marginal cost of work have been equally increased.
E) The premise of the question is incorrect because an equal distribution of income would increase rather than decrease the total amount produced.
A
Economics
You might also like to view...
If the income elasticity of food is 0.72, then food is
A) a necessity and a normal good. B) a normal good. C) a necessity. D) an inferior good.
Economics
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%
a. True b. False Indicate whether the statement is true or false
Economics