Principles of Microeconomics / Unit 14 MIC 1311 short lesson, about 20 seconds
Tools and the Trade-off
Captions available
The idea
Governments reduce inequality three ways: redistribution funded by a progressive income tax, which takes a rising percentage as income rises; a ladder of opportunity, preschool to apprenticeships; and inheritance taxes. Whether equality costs output is contested.
In practice
Public education redistributes and builds skills at once.
Where people slip
One attributed view sees a steep trade-off with incentives; another a flat region where similar economies differ.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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