Question

9. Would the maximin criterion achieve perfect income equality? a. Yes. There would be no way to reallocate resources to raise the utility of the poor. b. Yes. The maximin criterion would eliminate poverty. c. No. It is impossible for complete equality to benefit the worst-off people in society. d. No. Complete equality would reduce incentives to work, which would reduce total income, which would reduce the incomes of the worst-off people in society.

Answer 1

Answer:

C

Explanation:

Although the maximin criterion emphasizes the worst-off person in society and it's targeted towards equalizing of the distribution of income by transferring income from the rich to the poor, it will not lead to a complete egalitarian society. Because this will make the people not to have incentive to work hard and the societal total income will substantially fall off and the least fortunate person will be worse off. Thus, this rule still allows disparities in income.