Micro - Why some level of inequality good

Question 1

KAA 1

Answer 1

K - gives people incentive to work hard
An - If there was no inequality people would not strive to work harder
Ap -

Question 2

Eval 1

Answer 2

Low pay may disincentive employment if they can get unemployment benefits

Question 3

KAA 2

Answer 3

K - competition
An - firms strive to be better to achieve more profit resulting in innovation and more efficient techniques
Ap -

Question 4

Eval 2

Answer 4

If inequality is too great however, there is the risk of crime increasing and impacting a country