A Major Problem with Using the Egalitarian Principle to Distribute

question 119

Multiple Choice

A major problem with using the egalitarian principle to distribute income is that

• A) it would eliminate the incentives that rewards provide in an economic system.
• B) it is difficult to know when an equal distribution of income has been achieved.
• C) it would not be fair to the wealthy.
• D) there exist no mechanisms to carry out such a scheme.

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Definitions:

Short Run

A time period in economics during which at least one input in the production process is fixed, affecting production capabilities.

Price of Capital

The cost of using capital assets to produce goods or services, often expressed in terms of interest rates or rental rates on capital equipment.

Total Cost

The complete expenditure incurred by a firm in the production of goods or services, including both fixed and variable costs.

Production Technique

Methods and processes used in the conversion of inputs into outputs in the production of goods or services.