When economic analysis takes place within the context of maximizing a social welfare function,the conclusion always is _____.
A)that income should be completely redistributed
B)that income should not be redistributed at all
C)that some level of redistribution is optimal
D)that income redistribution has no relations to maximizing social welfare

Question

Quizplus · Accepted Answer

When economic analysis takes place within the context of maximizing social welfare function, the conclusion usually implies that some level of income redistribution is optimal, as it leads to a more equitable distribution of resources and can enhance the overall welfare of society. However, the optimal level of redistribution may depend on various factors, such as the extent of income inequality, the preferences of individuals, and the efficiency of the market system. Therefore, the exact level of redistribution required to maximize social welfare may vary from case to case.

When Economic Analysis Takes Place Within the Context of Maximizing