Why do some economists think that inequality is useful?
A) Inequalities can have an impact on saving and spending patterns
B) A degree of inequality produces a lack of economic incentives
C) Overall economic growth can reduce gender gaps in education
D) Certain forms of inequality do not reduce individuals' or groups' chances to fully contribute to the economy
E) A degree of inequality produces economic incentives

Question

Quizplus · Accepted Answer

A degree of inequality can create economic incentives by motivating individuals to work harder, innovate, and invest in education or skills to improve their economic status, which can drive economic growth.

Why Do Some Economists Think That Inequality Is Useful