Okun argues that society can redistribute income only in a "leaky bucket."

Match the political stance in the first column with the maximum leakage that would be acceptable in a redistribution scheme from the second column:

Extreme egalitarian socialist

Liberal

Moderate

Libertarian opposed to any taxes

A. 20%

B. 0%

C. 95%

D. 60%

0.34 points

QUESTION 2

Which of the following is not a reason why redistribution will lower efficiency according to Okun?

Choose all that apply

1.Bureaucratic costs

2.Increased crime

3.Reduced work effort

4.Reduced incentive to innovate

5.Spread of communicable diseases

0.33 points

QUESTION 3

Which of the following may explain why Okun is wrong and efficiency does not increase with inequality.

Choose all that apply.

1.Increased distrust and greater spending on security.

2.Reduced work effort.

3.Reduced investment in children.

4.Reduced health

Give explanation