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21-06-2024
Social Studies

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What are two problems associated with income redistribution?

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GinnyAnswer GinnyAnswer

21-06-2024

Final answer:

Income redistribution poses challenges in efficiently allocating resources and determining fair income distribution.

Explanation:

Two problems associated with income redistribution:

Efficiency of Resource Allocation: It can be challenging to determine if resources are allocated efficiently through income redistribution, potentially leading to misallocation.
Fairness of Income Distribution: Deciding what constitutes fair income distribution is subjective and can vary, impacting the effectiveness of income redistribution policies.

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