A. Why does redistribution cause efficiency losses? B. Why might society choose to redistribute...

Question:

A. Why does redistribution cause efficiency losses?

B. Why might society choose to redistribute resources from one group to another when doing so reduces the overall size of the economic pie?

Redistribution:

Redistribution is referred to a process of distributing economic value in such a way that it will help to create social equality among all the citizens of the country. Redistribution is also acknowledged as reallocation.

Answer and Explanation: 1

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1. Redistribution can be a reason for the efficiency loss because it is a costly process for which the government can require more funds to conduct...

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Forms of Economic Distribution & Exchange within Society

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Chapter 21 / Lesson 12
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Every society has a different way of organizing the distribution and exchange of goods. In this lesson, explore some different forms of economic distribution and exchange, including generalized and balanced reciprocity, redistribution, and market exchange.


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