As a Result of the Tradeoff Between Income Equality and Incentives

question 124

Multiple Choice

As a result of the tradeoff between income equality and incentives to work,what do we know about an optimal redistribution policy

• A)It can never be funded through taxes on wage income.
• B)It must always achieve a full egalitarian society.
• C)It is only consistent with transfers to the middle class.
• D)It always falls short of achieving a full egalitarian society.

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