00:01
Hello students, so in this video we will be discussing a statement and what is the reason behind this statement and whether this statement is valid or not.
00:11
So the statement is such that there need be no trade -off between the equality and efficiency and it is further continued as an efficient economy that yields an economy distribution that many regard as unfair may cause those with meager incomes to become disqual.
00:31
Discouraged and stopped trying, whereas the efficiency in this statement is explained as so efficiency may be undermined.
00:39
So, the fairer distribution of rewards may generate a higher average productive effort on the part of the population, which will be enhancing the efficiency.
00:55
And if people are thinking, or the individuals in the particular economy are thinking, that they are playing a fair economic game and this belief will cause them to try.
01:07
Try harder whereas an economy with an equitable income distribution may be efficient as well.
01:13
So in this statement, we will be discussing that whether the equality or efficiency will go hand in a country or not.
01:29
So while there is certainly an efficiency wages, that means there is more equitable distribution of income.
01:36
So it is hard to imagine that the disincentive effects of both the lower end.
01:41
Higher income groups of income redistribution will be swamped by an increased interest on the part of some of the poor in playing in the economic game...