ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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More consumer spending among the middle class.
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More use of natural resources and lower consumption
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More consumer satisfaction among the rich.
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Greater political equalities.
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Detailed explanation-1: -High levels of income inequality are linked to economic instability, financial crisis, debt and inflation.
Detailed explanation-2: -Income equality may refer to: Economic egalitarianism, a state of economic affairs in which equality of outcome has been manufactured for all participants. Economic inequality, differences in the distribution of wealth and income within or between populations or individuals.
Detailed explanation-3: -Advantages of Income Equality. Less use of natural resources. More consumer satisfaction among the poor. More political equality. Fewer incentives for corruption and illegal activities for financial gain. Advantages of Income Inequality. Greater incentive to work hard. More items
Detailed explanation-4: -Incentive effect. If someone works harder and as a consequence receives a higher wage then this is not market failure. Entrepreneurs require rewards. Inequality is necessary to encourage entrepreneurs to take risks and set up a new business. Trickle down effect. Fairness. 06-Dec-2019