Author Question: Which of the following arguments support the proposition that society should accept at least some ... (Read 102 times)

tth · **on:** Jun 29, 2018

Which of the following arguments support the proposition that society should accept at least some income inequality?

A) Income redistribution will require taxation, causing inefficiently low levels of labor supply and saving, thus decreasing the size of the economic pie.
B) Administrative costs associated with income redistribution imply that low-income people receive less than 1 for each dollar taken from high-income people.
C) Income redistribution programs divert skilled labor and capital to tax compliance activities and away from production of goods and services that people value.
D) All of the above answers are correct because all support the proposition that society should accept some income inequality.

Question 2

In the figure above, Gap maximizes its profit if it charges ________ per jacket.

A) 100
B) 95
C) 75
D) 120