The costs of income inequalities in an economy can be reduced to an extent if there is _____.

Question

Quizplus · Accepted Answer

Income mobility refers to the ability of individuals to move up or down the socio-economic ladder over time. If there is greater income mobility in an economy, it can mitigate the negative effects of income inequalities since people have more opportunities to improve their economic status. This can lead to a more equitable distribution of wealth and reduce social unrest that results from high levels of income inequality.

The Costs of Income Inequalities in an Economy Can Be