In the parable of the leaky bucket, a fundamental problem with government redistribution programs is identified. As long as the government only has "leaky buckets" at its disposal,
A)the costs of welfare programs will exceed the benefits.
B)it should not try to reach complete equality in income.
C)income equality will be the best policy option.
D)equality of economic opportunity will reduce society's utility.

Question

Quizplus · Accepted Answer

The parable suggests that redistribution efforts are inefficient due to "leaky buckets," meaning resources are lost in the process. Therefore, striving for complete income equality may not be feasible or efficient.

In the Parable of the Leaky Bucket, a Fundamental Problem