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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the Positives of Unequal Distribution of Income and Wealth in a Society?

Author: eric_galvao



Answer:

-Lower Earners may Work Harder to gain a Higher Income, boosting Productivity -Incentivises people to start their Firms in order to increase their Wealth and Income -Higher Incomes for the Rich may lead to them Investing more in Firms. This creates Jobs, making some of the Wealth go down to the Poorest in Society. This is the Trickle-down Effect


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