Why Does Redistribution, So That the Distribution of Income Is

question 80

Multiple Choice

Why does redistribution, so that the distribution of income is equal, bring about less total output?

• A) No one can determine marginal benefit or marginal cost as a result.
• B) Because the marginal benefit and marginal cost of work have been equally increased.
• C) The premise of the question is incorrect because an equal distribution of income would increase rather than decrease the total amount produced.
• D) Those in political power will likely receive a larger income.
• E) Incentives to work are reduced.