Problems of inequality

Question 1

Why is equity a normative concept

Answer 1

Fairness and Social justice are subjective

Question 2

Explain the relationship between efficiency and equity

Answer 2

Often, inequality promotes efficiency as there is an incentive for excellence

Question 3

What is the welfare state

Answer 3

combination of government policies used to reduce free market inequalities since ww2

Question 4

What are the components of the welfare state

Answer 4

1) Progressive taxation
2) A system of means tested benefits
3) Free provision of merit goods, paid from taxation