Asked by
Renee Handley
on Dec 12, 2024
Verified
When there is only a weak link between work effort and reward
A) individuals will undertake fewer projects that create income.
B) taxing the rich and distributing the money to the poor becomes the best way to increase the size of the economic pie.
C) corporations will profit more.
D) individuals have a strong incentive to undertake projects that generate income.
Work Effort
The amount of physical or mental energy used to perform a task or achieve an objective.
Economic Pie
A metaphor for the total amount of wealth or resources available in an economy that can be distributed among its participants.
Reward
A benefit or return that results from performing a particular action or behavior, often seen as a motivation.
- Assess the impact of income distribution on the encouragement of individuals in a market economy.
Verified Answer
HA
Learning Objectives
- Assess the impact of income distribution on the encouragement of individuals in a market economy.