One tradeoff society faces is between efficiency and equality. Define each term. If the U.S. government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy
Efficiency is the property of society getting the most it can from its scarce resources. Equality is defined as the property of distributing economic prosperity evenly among the members of society. Often, these two goals conflict. When the government redistributes income from the rich to the poor, it reduces the reward for working hard. Fewer goods and services are produced and the economic pie gets smaller. When the government tries to cut the economic pie into more equal slices, the pie gets smaller. Policies aimed at achieving a more equal distribution of economic well-being, such as the welfare system, try to help those members of society who are most in need. The individual income tax asks the financially successful to contribute more than others to support the government.
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If your income goes down by10% and, in response, the quantity demanded of good x falls by 20%, the income elasticity of demand would be:
a. 2 b. 4 c. .5 d. .20
Average total cost is
a. the change in cost as output decreases b. the change in cost as output increases c. TC / quantity of output d. MC - TC e. AVC - AFC
When budget deficits during recessions are covered by budget surpluses during expansions, then it is termed as annually balanced budget
Indicate whether the statement is true or false
Refer to the given table. Relative to column C, column D represents:Price Per UnitColumn A Units Per YearColumn B Units Per Year$205040$306050$407060$508070$609080
A. a decrease in supply. B. a decrease in demand. C. an increase in demand. D. an increase in supply.