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People Who Oppose Government Intervention to Reduce Income Inequality Have

Question 23

Multiple Choice

People who oppose government intervention to reduce income inequality have sometimes argued that allowing large income gaps can be beneficial because


A) people with large incomes will feel guiltier about their financial advantages and be motivated to give more to the poor.
B) large income gaps increase the incentive to support a market-based economy.
C) the poor will have a shorter life expectancy, leaving more wealth for the successful few.
D) it increases the incentive to work harder to be successful, thereby increasing economic growth.

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