Question 10 Unequal income distribution leads to _._. while equal income distribution leads to O More equality; more efficiency. \begin{tabular}{l} More equality; less efficiency. \\ \hline Less equality; less efficiency. \\ \hline Previous \\ \hline\end{tabular}

We start by recalling a commonly discussed trade‐off in economics. A society with unequal income distribution typically rewards achievements and innovation, thereby providing strong incentives that can lead to higher levels of output—that is, greater efficiency—but at the cost of greater inequality. In contrast, a society that redistributes income more equally tends to improve equality but may weaken those incentives, leading to a decline in efficiency. Thus, we have: - Unequal income distribution results in lower equality but higher efficiency. - Equal income distribution results in higher equality but lower efficiency. We can express this as: \[ \text{Unequal income distribution} \longrightarrow \text{Less equality; More efficiency} \] \[ \text{Equal income distribution} \longrightarrow \text{More equality; Less efficiency} \]