• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Using the data and your economic knowledge, evaluate the view that the benefits resulting from a more equal distribution of income exceed the costs.

Extracts from this document...

Introduction

´╗┐Using the data and your economic knowledge, evaluate the view that the benefits resulting from a more equal distribution of income exceed the costs. The distribution of income is defined as the distribution of wages earned across a company, industry or country. I will be focusing on the distribution of wages earned across a country. There are both advantages and disadvantages of the equal distribution of income. If it was equalised and everyone earned the same amount, people would have less incentives to do more challenging but vital jobs (e.g. ...read more.

Middle

This would come from both people in the higher quintiles of wage rates shown in extract A. These are both major disadvantages showing that it may not be practical to implement equal distribution as they don?t outweigh the costs which would be public outcry, striking and many others. The advantages of implementing are that society would be more equal, making debts, mortgages etc easier to manage for banks as everyone has the same income. ...read more.

Conclusion

This shows that it is better for the lower quintiles also shown in extract A as they would benefit from the equalisation of wage rates, this also means that the higher quintiles would lose their higher wage rates which would cause issues within society that would be part of the costs of implementing the scheme. In conclusion I feel that, although the base idea is good, especially for those of lower incomes and wage rates, the costs ? both social and economical (e.g. legally making everyone equal and striking) would be extremely high which I feel would be too high to pay. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Markets & Managing the Economy section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Markets & Managing the Economy essays

  1. Explain what you understand by the Private Finance Initiative - Evaluate how successful it ...

    Various projects are involved with the PFI scheme - housing, property, transport and street lighting, waste management (Onyx), individual scores, one police station. This shows that the range of public services that the government want to involve the private sector.

  2. benefits and costs of Government Intervention which aims to make the distribution of income ...

    However, there are disadvantages implicated with using benefits to redistribute income. Firstly, they are not a long term solution and can be a disincentive to work. Benefit fraud can be a huge problem as they also cost the government a huge amount.

  1. Economics - Data Response January 2006

    business and allows for more internal economies of scale - lower long run average costs - improved profits and competitiveness. It also creates a wider range of products. Another advantage is that it reduces competition by removing rivals, which increases market share and pricing power.

  2. The Importance of the Canadian Airline Industry.

    In 1992, as the worldwide industry lost U.S.$4.8 billion, the two Canadian carriers lost more than 11 percent of the world's total, even though they represented less than 3 percent of the global airline business (Skene 22).

  1. Assess the costs and benefits of an extension of the tube line to Croydon

    At price P2 and quantity Q2, the level (quantity) of disruption has been decreased by increasing the cost of disruption (most likely through some form of financial penalty enforced by the government). It is at this point that marginal social cost and marginal social benefit meet (i.e.

  2. The concept of external costs and benefits.

    If the free-rider problem cannot be solved, valuable goods and services will remain unproduced. People can be very selfish and think - If I cannot charge them for these benefits; I will not clean my garden as often as they would, or I will not stage a fireworks show.

  1. Using the data and your economic knowledge, evaluate the economic case for and against ...

    The downturn may be only part of the business cycle, but those rendered unemployed are likely to suffer from dwindling skill levels if their human capital is not in day-to-day use. There are potentially serious equity considerations, and the plight of those made unemployed ________________ deserves consideration.

  2. . . . the provision of speed cameras is a source of government failure ...

    This means that the social benefit which is the MSB = Marginal Private Benefit + Marginal External Benefit- is greater and other members of society will benefit. This is supported by Extract E which also states how the external cost of traffic accidents can be as much as ‘£1 253

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work