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Lauren1 Lauren1
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Posts: 4120
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9 years ago
Which of the following arguments support the proposition that society should accept at least some income inequality?
A) Income redistribution will require taxation, causing inefficiently low levels of labor supply and saving, thus decreasing the size of the economic pie.
B) Administrative costs associated with income redistribution imply that low-income people receive less than $1 for each dollar taken from high-income people.
C) Income redistribution programs divert skilled labor and capital to tax compliance activities and away from production of goods and services that people value.
D) All of the above answers are correct because all support the proposition that society should accept some income inequality.
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MrDerecheMrDereche
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#1
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9 years ago
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Lauren1 Author
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#2
9 years ago
Thank you, this really, really helps Heavy Heart
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#3
9 years ago
You're welcome!
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