Which of the Following Arguments Support the Proposition That Society

question 105

Multiple Choice

Which of the following arguments support the proposition that society should accept at least some income inequality?

• A) Administrative costs associated with income redistribution imply that low- income earners receive less than $1 for each dollar taken from high- income earners.
• B) Income redistribution programs divert skilled labour and capital to tax compliance activities and away from production of goods and services that people value.
• C) Income redistribution will require taxation, causing inefficiently low levels of labour supply and saving, thus decreasing the size of the economic pie.
• D) All of the above answers are correct because all support the proposition that society should accept some income inequality.