What is involved in determining the most socially desirable level of income equality?

Question

Quizplus · Accepted Answer

Determining the most socially desirable level of income equality involves normative economics, which is a branch of economics that deals with subjective value judgments rather than objective data. It involves weighing the pros and cons of different levels of income equality based on ethical and moral considerations, societal values, and the distribution of resources and opportunities. Activities done through markets or by firms are not sufficient to determine the most socially desirable level of income equality, and evaluating all externalities is not directly related to determining income equality.

What Is Involved in Determining the Most Socially Desirable Level