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(I) Positive Economics Cannot Determine How Much Income Inequality Should

Question 18

Multiple Choice

(I) Positive economics cannot determine how much income inequality should be present in a country. (II) Critics of government action to reduce income inequality argue that modifying the market process of income determination may create perverse incentives and hurt wealth creation.


A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.

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