The government has just passed a law requiring that all residents earn the same annual income regardless of work effort. This law is likely to:

Question

Quizplus · Accepted Answer

The law would likely decrease efficiency because it removes the incentive for individuals to work harder or be more productive, as everyone earns the same regardless of effort. However, it would increase equality by ensuring that all residents have the same income.

The Government Has Just Passed a Law Requiring That All