Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her.
FIGURE 1- 3
-Income redistribution in a mixed economy
A)risks reducing individual incentives to work and produce.
B)is supported by all individuals.
C)is only accomplished through government intervention.
D)is not allowed.
E)rarely occurs.

Question

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her.
  FIGURE 1- 3
-Income redistribution in a mixed economy
A)risks reducing individual incentives to work and produce. 
B)is supported by all individuals. 
C)is only accomplished through government intervention. 
D)is not allowed. 
E)rarely occurs.

Quizplus · Accepted Answer

Income redistribution in a mixed economy can risk reducing individual incentives to work and produce because individuals may feel less motivated if they perceive that their earnings will be redistributed.

Madeleine Allows Herself $100 Per Month for Purchasing Coffee