Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 20 - Part VI - Income Inequality and Poverty - Quick Check Multiple Choice - Page 431: 3

Answer

d. the distortionary effect on work incentives is not too large

Work Step by Step

A utilitarian believes that the redistribution of income from the rich to the poor is worthwhile as long as the distortionary effect on work incentives is not too large. Not everyone who contributes to the program will be in favor of it. The income of each person might not reflect the marginal product (after taxes and transfers).
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