Which group (or groups) would be the most upset by wide variation in the income

Question

Which group (or groups) would be the most upset by wide variation in the income distribution?

       utilitarians
       utilitarians and liberals
       libertarians
       liberals and libertarians

When incentives to earn income are distorted by income redistribution programs,

       losses can exceed potential gains from greater equality of income.
       total income in an economy can fall.
       total utility in society can fall.
       All of the above are correct.

Economists who study labor markets have discovered that

       only about 5 percent of wage differences are related to chance.
       ability is not difficult to measure but is largely insignificant in explaining wage differences.
       work effort is difficult to measure but is not likely to contribute much to an explanation of wage differences.
       ability, effort, and chance are likely to be significant contributors to wage differences.

Which group (or groups) would be the most upset by wide variation in the income distribution?

Explanation / Answer

1>   liberals and libertarians

Since utilitarians care about the sum of welfare, income distribution will not matter to them.

2>   All of the above are correct.

If income redistribution scheme discourages work, it can cause welfare loss.

3>ability, effort, and chance are likely to be significant contributors to wage differences.

These are the main 3 contributors to wage differences.

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