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Norms Dictating That Any Community Member Earning Unusually High Income

Question 22

Multiple Choice

Norms dictating that any community member earning unusually high income give transfers to members with lower incomes ________ individuals' incentives to invest and innovate,because individuals must bear ________ of innovation while expecting to enjoy ________ the returns.


A) reduce; a fraction of the cost; all of
B) increase; a fraction of the cost; only a fraction
C) reduce; the full cost; only a fraction of
D) increase; the full cost; all of

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