Measures taken to reduce inequality are likely to cause economic efficiency to

Question

Quizplus · Accepted Answer

Measures taken to reduce inequality often involve redistributive policies such as taxation and welfare programs, which can distort market incentives and lead to a decrease in economic efficiency. This is because they can reduce the incentives for both the wealthy to invest and innovate and for the less wealthy to work and improve their skills, potentially leading to a less efficient allocation of resources.

Measures Taken to Reduce Inequality Are Likely to Cause Economic