If complete equality of income were legislated, which of the following would economics predict?

A) People would become richer.
B) Society would gain utility from the extra goods produced.
C) Individuals would willingly work longer hours and thus produce more.
D) The incentive to produce and perform efficiently would be virtually eliminated.

Question

Debasish Swain · Accepted Answer

Final Answer : D, Explanation :  If complete equality of income were legislated, there would be no incentive for individuals to work harder or perform efficiently as their income would not be affected by their efforts. This could lead to a decrease in productivity and an overall reduction in the amount of goods produced, which would not benefit society. Therefore, the incentive to produce and perform efficiently would be virtually eliminated.

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