If Income Were Distributed According to the Egalitarian Principle of "To

question 183

Multiple Choice

If income were distributed according to the egalitarian principle of "to each exactly the same," then one problem would be that

• A) there would be little or no incentive for individuals to take risky, hazardous, or unpleasant jobs.
• B) individuals would have an excess desire to invest in their own human capital.
• C) too many individuals would want to take risky jobs.
• D) productivity levels would probably become too high.

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Definitions:

Economic Value

An estimation of the benefit provided by a good or service to an economic agent.

Interest Rate

The percentage at which interest is charged or paid on borrowed funds, typically expressed as an annual percentage rate.

Equivalent

Identical in worth, quantity, role, significance, or rank.

Equivalent Values

Items or amounts that are equal in value, function, or meaning.