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Each of the following contributes to income inequality except: a. differences in ability and training. b. differences in job tastes. c. differences in wealth ownership. d. government transfers.
Each of the following contributes to income inequality except: a. differences in ability and training. b. differences in job tastes. c. differences in wealth ownership. d. government transfers.
Final answer:While differences in ability and training, job tastes, and wealth ownership contribute toincome inequality,government transfers, such as redistribution policies and estate taxes, are designed to reduce it by transferring wealth from richer to poorer individuals.Explanation:The question asks which of the following does not contribute to income inequality: differences in ability and training, differences injob tastes, differences in wealth ownership, or government transfers. All these factors indeed affect income inequality to varying degrees.Differences in ability and training may lead to income inequality as individuals with more skills or education typically earn more than those with less education or skills. Similarly, differences in job tastes could contribute to income disparity as certain jobs generally command higher salaries than others. Similarly, differences inwealth ownershipalso play a significant role in income inequality as wealthier individuals have more resources and opportunities to further increase their wealth.However,government transferssuch as redistribution policies, assist in reducing income inequality. They are designed to adjust income distribution by transferring money from wealthier individuals to the less fortunate, thus they do not contribute to but rather help to mitigate income inequality.Learn more about Income Inequality here:brainly.com/question/33021569#SPJ11...