Asked by Andrea Puentes on Jun 26, 2024

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Suppose the total income of an economy is analogous to a pizza, with the division of the pizza representing income distribution. The relevance of this analogy to income distribution would be best reflected in which one of the following questions?

A) If resources are used to make pizza, what other goods and services must be given up to do this?
B) If cutting a pizza in more equal slices shrinks the pizza, how much shrinkage will society tolerate?
C) If pizza workers were paid more money, would they become more productive workers for society?
D) If pizza sales increase, would pizza companies redistribute the profits to their employees?

Income Distribution

How total earnings are distributed across individuals or households within an economy.

Equal Slices

A method of dividing or allocating resources, goods, or profits evenly among all parties or members.

  • Recognize the trade-offs between economic efficiency and income equality.
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KM
kristian martinezJun 27, 2024
Final Answer :
B
Explanation :
The analogy of dividing a pizza to represent income distribution is best reflected in question B, as it directly addresses the trade-off between equality (more equal slices) and the total size of the economy (the size of the pizza), which is a central concern in discussions of income distribution.