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

question 109

Multiple Choice

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

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

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