Refer to the Article Summary. The article discusses wealth inequality, and for some people this means a more equitable distribution of wealth is needed in the economy
Would an equitable distribution of wealth necessarily be the most efficient distribution of wealth?
A) No, it is impossible to have an economically efficient distribution which is also an equitable distribution.
B) Yes, equitable and efficient are two different words which have the same definition.
C) Yes, in order for the distribution to be equitable, it must also be efficient.
D) No, an economically efficient distribution of wealth would not necessarily be equitable.
D
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The chief economic cost associated with unemployment is
a. the benefits paid to the unemployed by the government b. the foregone output that would have been produced if those individuals were employed c. the taxes that are passed along to individuals to pay for unemployment insurance d. higher crime rates e. the psychological costs associated with unemployment
Answer the following statement(s) true (T) or false (F)
1. When a Clarke tax is used, the revenue collected may or may not cover the cost of providing the public good. 2. One problem with a Clarke tax is that although it may not cover the complete cost of a public good, it will never generate more than the cost of the good. 3. Social costs are equal to the costs imposed on others. 4. Social costs are felt by consumers but not by manufacturers. 5. All cars contribute positively to social gains.