Taking into Account the Incentive Effects of Redistribution on the Poor

question 230

Multiple Choice

Taking into account the incentive effects of redistribution on the poor, utilitarianism suggests that:

• A) giving dollars to poor people is the best way to improve their welfare.
• B) giving dollars to poor people is not always the best way to improve their welfare.
• C) poor people tend to be more responsive to incentives.
• D) poor people tend to be less responsive to incentives.

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