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.

---

Definitions:

Optimistic Bias

The tendency to believe that oneself is at less risk of experiencing a negative event compared to others.

Illusion of Control

The false belief that one can influence or control outcomes that are actually determined by chance.

System-1

A term from cognitive psychology, referring to the fast, automatic, and often unconscious way of thinking.