This preview shows page 1. Sign up to view the full content.
Unformatted text preview: sum” transfers of wealth.
C. welfare is maximized when wealth is distributed evenly within society.
D. there is a fundamental conflict between wealth creation and wealth redistribution.
4. A “lump-sum transfer” of wealth is
A. one in which the recipient receives the transfer in one payment rather than as a stream
of payments over time.
B. one in which the donor makes the transfer in one payment rather than as a stream of
payments over time.
C. one in which the amount transferred from one individual to another is independent of
the behaviour of either the donor or the recipient.
D. None of the above. 32 5. The potential conflict between wealth creation and wealth redistribution arises because
A. wealth transfers typically distort incentives.
B. there is no agreement in society on the ideal distribution of wealth.
C. of historical differences in rates of wealth creation across different countries.
D. All of the above.
6. Which of the following statements is consistent with economic theory on wealth
View Full Document
- Spring '14