"If income were redistributed in favor of the poor, we would eliminate scarcity." The preceding statement is
A) essentially correct.
B) incorrect because scarcity has already been eliminated among the poor in wealthy countries such as the United States.
C) incorrect; it fails to recognize that poverty will be present as long as resources are scarce.
D) incorrect; it confuses the elimination of poverty with the elimination of the constraint imposed by scarcity.

Question

Quizplus · Accepted Answer

The statement confuses the elimination of poverty with the elimination of scarcity. Even if income were redistributed to favor the poor, resources would still be scarce and therefore poverty would still exist. The statement fails to recognize that scarcity is a fundamental economic constraint that cannot be eliminated, only managed.

"If Income Were Redistributed in Favor of the Poor, We