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Current distribution of income a benefit

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1. In what primary way is the current Distribution of Income a BENEFIT to our economy and to our society ? Why do you think so?

2. In what primary way is the current Distribution of Income a COST to our economy and to our society ? Why do you think so?

3. Should the Federal Government make a CHOICE to try to influence the Distribution of Income through tax policy and social programs ? Should the goal be: a) an exactly equal distribution, b) a somewhat more (or less) equal distribution, c) a slightly more (or less) equal distribution ... or d) the government should not try to influence the distribution at all ?

4. In your view, what is the primary UNCERTAINTY and the primary RISK of a Federal Government choice to try (or not to try) to influence the present Distribution of Income ?

5. What is your interpretation of Figure 4.6 on Page 77 of our textbook and how would you change those figures if you had the power to do so ? What would be the Benefit, the Cost, the primary Uncertainty and the primary Risk of the changes that you would make ?

Reference no: EM131279561

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