Answered: 4. Why does redistribution cause…

4. Why does redistribution cause efficiency losses? Why might society choose to redistribute resources from one group to another when doing so reduces the overall size of the economic pie?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 12SCQ: Which set of policies is more likely to cause a tradeoff between economic output and equality:...

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Equilibrium refers to a state of balance that comes about because there is equality in all forces.

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4. Why does redistribution cause
efficiency losses? Why might society
choose to redistribute resources from
one group to another when doing
so reduces the overall size of the
economic pie?

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