Why Does Redistribution,so That the Distribution of Income Is Equal,bring

question 135

Multiple Choice

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

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

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