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11. Describe rational for income redistribution
Solution
The real reason for income redistribution is ensuring economic welfare of poor ans destitute. It is
morally correct to provide for underprivileged groups. Market mechanisms doesn't provide for
them. It is infact harmful for them in many respects. Also due to proper redistribution economic
growth might rise because workers get better food, can purchase medicines and have strong
incentive to work. It also promotes creativity of under previlege sections of society.

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11. Describe rational for income redistributionSolutionThe rea.pdf

  • 1. 11. Describe rational for income redistribution Solution The real reason for income redistribution is ensuring economic welfare of poor ans destitute. It is morally correct to provide for underprivileged groups. Market mechanisms doesn't provide for them. It is infact harmful for them in many respects. Also due to proper redistribution economic growth might rise because workers get better food, can purchase medicines and have strong incentive to work. It also promotes creativity of under previlege sections of society.