When the government attempts to cut the economic pie into more equal slices,what happens?

Question

Quizplus · Accepted Answer

When the government attempts to distribute the economic resources more equally, it usually results in a decrease in incentives for individuals and businesses to produce and invest, ultimately leading to a smaller overall pie for everyone. This is because people feel less motivated to work hard and take risks if they know that their rewards will be redistributed. Therefore, cutting the pie into more equal slices can be counterproductive and result in a smaller pie for everyone in the long run.

When the Government Attempts to Cut the Economic Pie into More