Over the last 40 years, the gap between the rich and the poor in the United States has been increasing.Economists have justified this outcome by noting that
A)efficiency can never be achieved without greater inequality.
B)inequality is not a problem.
C)inequality is a desirable policy outcome.
D)inequality is a necessary consequence of achieving greater efficiency.
E)efficiency should be achieved regardless of the cost.

Question

Quizplus · Accepted Answer

Economists have often argued that achieving greater efficiency is only possible when there is a greater inequality of income and wealth, as this motivates the people to work harder and invest their resources wisely. They argue that this ensures that there are enough resources available for economic growth and development, which benefits everyone in the long run. Therefore, inequality is seen as a necessary consequence of achieving greater efficiency, and not a policy outcome by itself.

Over the Last 40 Years, the Gap Between the Rich