Taking into account the incentive effects of redistribution on the poor, utilitarianism suggests that:
A) giving dollars to poor people is the best way to improve their welfare.
B) giving dollars to poor people is not always the best way to improve their welfare.
C) poor people tend to be more responsive to incentives.
D) poor people tend to be less responsive to incentives.

Question

Quizplus · Accepted Answer

While utilitarianism aims to improve overall welfare, it recognizes that giving dollars to poor people may not always be the best way to achieve this. The incentive effects of redistribution on the poor must be taken into account. Poor people may become reliant on handouts and may not be incentivized to work or improve their situation if they receive a guaranteed income. Therefore, targeted approaches such as job training programs or education initiatives may be more effective in improving overall welfare in the long term.

Taking into Account the Incentive Effects of Redistribution on the Poor