Question

plz answer the following question

Starting on page 372, our textbook discusses the tradeoff between incentives and income equality. As mentioned, "it is common to draw the tradeoff between economic output and equality." This is especially true among economists. Consider the textbook's discussion as well as what you have learned in our course. Do you believe economic output is more important? Or is equality more important to you? Do you think there must be a tradeoff between the two? Explain why you feel the way you do.

Answer 1

Answer

If the govt. policies to reduce the poverty of country or to promote economic equality carried out to extreme then the incentive for economic output will be injured .Like guaranteeing a certain level of income remove the incentive to work .Also a high distribution level with high taxes on high earner would discourage the work and enterpreneurship.So , it is important and common to have a tardeoff between the economic equality and economic output .The society must accpet a lower level of economic output if it want high level of equality because of lower incentive for production .The tradeooff could be achieved by external factor like providing certain program which might increase both the output and the economic equality .I believe that both are important to me economic output as well as economic equality , and it should be balanced as i said above through various program which are likely to increase both equality and output like free public eduction etc .

Have a good day !