As a Result of the Trade-Off Between Income Equality and Incentives

question 31

Multiple Choice

As a result of the trade-off between income equality and incentives to work,an optimal redistribution policy

• A) can never be funded through taxes on labor income.
• B) must always achieve a full egalitarian society.
• C) only benefits the middle class.
• D) always falls short of a fully egalitarian society.