According to the Maximin Criterion, Income Should Be Transferred from the Rich

question 162

Multiple Choice

According to the maximin criterion, income should be transferred from the rich to the poor as long as it

• A)raises the well-being of the least fortunate.
• B)does not alter incentives to work and save.
• C)promotes an equal distribution of income.
• D)does not lower the welfare of the elderly.

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Definitions:

Passive Margin

The transition between oceanic and continental crust that is not an active plate boundary, typically characterized by a broad continental shelf and little seismic activity.

Island Arc

An island arc is a type of archipelago, composed predominantly of a series of volcanoes, which arcs roughly parallel to the boundary of oceanic tectonic plates that are being subducted beneath lighter continental plates.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, potentially leading to the formation of a new ocean basin.

Passive Margin

A continental margin that is not associated with plate boundaries and hence experiences little seismic activity.