Question

Which of the following are necessary conditions needed to achieve income equality?

Choose one or more:

A. Markets would have to respond perfectly to all changes in labor demand and supply.

B. All people have to do the same job.

C. Every worker would have to have the same skills, ability, and productivity.

D. All workers would have to be perfectly mobile.

E. Every job would have to be equally attractive.

Answer 1

Option C D and E

Market should be flexible enough to respond to changes in the demand and supply for labour. This is required to maintain the wage rate equal for all kind of jobs offered in different regions. workers must have the same productivity so that their marginal product of labour is same. Also they need to be costly mobile show that whenever there is a dearth of workers in a region, resulting in a higher wage rate, they can move to that region and increase the labour supply, thereby equating the wage rate.