The government has just passed a law requiring that all residents earn the same annual income regardless of work effort.This law is likely to
A)increase efficiency and increase equality.
B)increase efficiency but decrease equality.
C)decrease efficiency but increase equality.
D)decrease efficiency and decrease equality.

Question

Quizplus · Accepted Answer

This law would likely decrease efficiency because it removes the incentive for individuals to work harder or be more productive, as everyone earns the same regardless of effort. However, it would increase equality in terms of income distribution, as all residents would receive the same annual income.

The Government Has Just Passed a Law Requiring That All