Asked by Kiana Despabiladero on Jul 21, 2024
Verified
Why don't we divide the economic pie evenly so that each person receives the same income?
Economic Pie
A metaphorical representation of a nation's total economic output, suggesting how much wealth is available for distribution among its population.
Same Income
A situation where two or more individuals or entities earn an identical amount of money over a given period.
- Understand the theoretical repercussions of absolute income equality and its possible effects on economic output and personal motivations.
- Analyze the pros and cons of reallocating income and wealth with a focus on its effects on economic productivity and moral considerations.
Verified Answer
HC
Hannah CatherineJul 21, 2024
Final Answer :
This question addresses the role of incentives. If people generally prefer leisure to work, not many will be willing, without reward, to engage in productive activities. Thus, if the link between work effort and reward is weakened, individuals have less incentive to work effectively to create income.
Learning Objectives
- Understand the theoretical repercussions of absolute income equality and its possible effects on economic output and personal motivations.
- Analyze the pros and cons of reallocating income and wealth with a focus on its effects on economic productivity and moral considerations.
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