What position would an egalitarian take?

Differences in income are fair if they come from differences in ability.
Differences in income are desirable because they promote economic efficiency.
Differences in income are OK if the government has not caused them.
Any income inequality should be presumed undesirable.

"If the government tries to tax the rich to help the poor, both groups have less incentive to produce." How do most economists react to this statement?

They have no opinion because it is a normative statement.
They agree because they think it describes a tradeoff between equity and efficiency.
They disagree because redistribution can be based on an insurance justification.
Those economists who want to help the poor reject this statement while those who do not want to help the poor agree with it.

Back to Reading Overview Next Page