What are the arguments against the redistribution of income?
What will be an ideal response?
Many people believe that markets are fair. Labor and capital are paid in accordance with the value of what they produce. Redistributing income violates the right to contract and the right to property (what an individual earns). Taxation and transfer programs interfere with the basic incentives of the market. Individuals have less incentive to work, save, and invest. Last, it is unclear whether the redistribution of income programs in the United States have done a good job of keeping people out of poverty.
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Katy has an ailing and wealthy, but miserly, parent. The parent has told Katy that if she takes care of him until he dies, then she will get $100,000 in inheritance
Katy knows that there is only a 50-50 chance that her father will leave her the full amount or nothing. To take care of her father, she has to take a job that pays $30,000 where her current job pays her $70,000 per year. If her father is expected to pass away in 1 year, what is Katy's expected wealth if she takes care of her father? A) $130,000 B) $90,000 C) $80,000 D) $70,000
Keynes argued that I. Capitalism did not always lead to full employment. II. Nominal prices were more important than relative prices
A) I only B) II only C) Both I and II D) Neither I nor II