Question

Is there such a thing as too much inequality if that inequality is the result of...

Is there such a thing as too much inequality if that inequality is the result of free-market forces and individual differences in effort and talent?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

I think there can be too much inequality even if it is the result of free-market forces and individual differences in effort and talent. We assume that the market is perfect but in reality, the market is not perfect and there can be market failures because of which the market equilibrium may be different from the socially optimum outcome. Also, the market does not provide a level playing field for all due to the differences in privileges of different people. Therefore, the income distribution decided by the market forces may be too unequal.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Many of us accept that too much income inequality is bad for the economy. Why might...
Many of us accept that too much income inequality is bad for the economy. Why might an economist argue that too little income inequality is bad for the economy?
In your opinion, is there such a thing as too much empowerment in the contemporary workplace?...
In your opinion, is there such a thing as too much empowerment in the contemporary workplace? Elaborate your opinion. What is it about organizational politics that can make individuals feel uneasy? Explain.
Which type of externality (Negative or Positive), if not internalized, result in a market producing too...
Which type of externality (Negative or Positive), if not internalized, result in a market producing too much output? Give a real life examples.
What are the two major forces that Dr. Reich suggests that created so much income inequality...
What are the two major forces that Dr. Reich suggests that created so much income inequality from 1979 until now? ( You will need to watch the Reich video all the way to answer both queations 1 and 2.
Why do economies and governments strive for economic growth? Cann too much growth be a bad...
Why do economies and governments strive for economic growth? Cann too much growth be a bad thing?
​Explain whether the market produces too little, too much, or the right amount: (a) of goods...
​Explain whether the market produces too little, too much, or the right amount: (a) of goods with detrimental externalities; (b) of goods with public good characteristics.
Industries with negative externalities result in market failures because price is too low and quantity is...
Industries with negative externalities result in market failures because price is too low and quantity is too low price is too low and quantity is too high price is too high and quantity is too low price is too high and quantity is too high
In a KOH string test, if you put too much KOH on the slide, in comparison...
In a KOH string test, if you put too much KOH on the slide, in comparison with the number of bacterial cells, what would be the result?
2) Say that an individual has retained too much salt in their body, increasing their Na+...
2) Say that an individual has retained too much salt in their body, increasing their Na+ load but not changing the osmolarity of the extracellular fluid.       a) Would this lead them to have low or high arterial blood pressure? Why?       b) What are the two (extrinsic) ways that the body would compensate to bring the salt load down in this individual? Explain the mechanisms of how each ends up decreasing the salt load.
What is the problem with leaving public goods up to the market system? Too much of...
What is the problem with leaving public goods up to the market system? Too much of the good gets produced Not enough of the good gets produced Business do not charge a high enough price The government charges too high a price What is the best example of a public good? Education Pizza Street lights Music Give an example of a negative externality in the market system. Government taxes The Koch brothers charging too high a price for energy Obamacare...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT