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Essentially, to reward people economically for reasons other than productivity, which indicates the value of work to the economy, changes the incentive structure of individuals to act and disinclines individuals from working because work is no longer rewarded. Additionally, there would be huge costs and inefficiencies created by the redistribution process itself, since creating, maintaining, and implementing that kind of system would not be free. Finally, information would need to be highly centralised in a system of equal income distribution and services would no longer reflect decentralised, efficient solutions created by individual interaction. These three factors would cause a major economic problem and be extremely costly, which leads most economists to believe in a tradeoff between equality and efficiency.
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What are the importance of national income in the economy?
The importance of national income in the economy is absolutely huge. This determines whether or not there is money that can be spent.
A regressive tax will tend to redistribute income more?
equally
What is underground economy?
products and income that are not reported as income to the government
What are the benefits of having an irrevocable trust?
The property is no longer vulnerable to your creditors, your heirs or your personal income taxes. After a waiting period, it cannot be used to disqualify you from entitlements. You can choose how the income will be distributed and how the property will eventually be distributed when the trust is terminated. However, you cannot get the property back. An irrevocable trust should be drafted by an expert in trust law.
Why an economy's income must be equal to its output?
Because output generates income.
What are two types of income distribution?
Two types of income distribution are equal income distribution, where all individuals receive the same amount of income, and unequal income distribution, where income is not equally distributed among individuals resulting in some earning more than others.
How the national income is distributed equally in the society?
In Communism with its truest form,where people should only do their dictated work and the state will take entire financial responsibility of their families,can national income be distributed equally in the society.But in practicality,it failed to provide necessary dividends and communism failed as witnessed in Soviet Russia and east European countries. Even China, being under communist regimes,opted for free market economy.Under democratic set up,there is ample scope for equal distribution of national income,provided there is no rampant corruption and people are really concerned and love their country from the core of their hearts.
What does Disparity of Income Distribution mean?
it means distribution of income is how a nation's total economy is distributed amongst its population. Classical economists are more concerned about factor income distribution,that is the distribution of income between the factors of production,labor land and capital. Distribution of income is measured by Lorenz curve and Gini co
What is the strength of a circular flow chart?
To show where income is distributed from external and internal factors To show where income is distributed from external and internal factors
Can you write a sentence using the word equally?
The estate was equally divided by the children. The chess masters were equally matched. It was equally apparent that they had no source of income.
What are the factors affecting demand for travel?
Disposable Income. income Economy uncertainty in economy inflation Climate
How was Khrushchev different from Stalin?
Stalin was a communist dictator, while Hitler was a facist dictator. Hitlers policy of facism was extremely racist, and was called Nazism. Communists feel that everything should be distributed equally, including income, property and industry was owned by the government. Facists still let people own property and business, but had strong opposition to everything that wasn't their idealology. Stalin was a communist dictator, while Hitler was a facist dictator. Hitlers policy of facism was extremely racist, and was called Nazism. Communists feel that everything should be distributed equally, including income, property and industry was owned by the government. Facists still let people own property and business, but had strong opposition to everything that wasn't their idealology. Stalin was a communist dictator, while Hitler was a facist dictator. Hitlers policy of facism was extremely racist, and was called Nazism. Communists feel that everything should be distributed equally, including income, property and industry was owned by the government. Facists still let people own property and business, but had strong opposition to everything that wasn't their idealology.
What are the importance of national income in the economy?
The importance of national income in the economy is absolutely huge. This determines whether or not there is money that can be spent.
A regressive tax will tend to redistribute income more?
equally
Can a revaluation reserve be classed as income and thus be distributed back to shareholders?
No.
What is underground economy?
products and income that are not reported as income to the government
Why an economy's income must be equal to its output?
Because output generates income.
