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Do you agree? Or disagree? describe your reasoning. "There need be no trade-off between equality and efficiency. An ‘efficient' economy that yields an income distribution that many regard as unfair may cause those with meager incomes to become discouraged and stop trying. So efficiency may be undermined. A fairer distribution of rewards may generate a higher average productive effort on the part of the population, thereby enhancing efficiency. If people think they are playing a fair economic game and this belief causes them to try harder, an economy with an equitable income income distribution may be efficient as well.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M963929

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