Lập luận như thế này thường được dùng để biện minh cho việc phân phối lại thu nhập và tạo thành một phần của mã đạo đức của người dân. Hầu hết mọi người sẽ lập luận rằng phải giàu có để trả tiền thuế hơn so với người nghèo và người nghèo phải nhận trợ cấp nhà nước nhiều hơn so với người giàu. | Introduction to Economics ECO401 VU Arguments like this are frequently used to justify redistributing income and form part of people s moral code. Most people would argue that the rich ought to pay more in taxes than the poor and that the poor ought to receive more state benefits than the rich. The argument is frequently expressed in terms of a pound being worth more to a poor person than a rich person. It does not prove that income should be so redistributed however unless you argue a that the government ought to increase total utility in society and b that it is possible to compare the utility gained by poor people with that lost by rich people - something that is virtually impossible to do. What details does an insurance company require to know before it will insure a person to drive a car Age sex occupation accident record number of years that a license has been held traffic law violations and convictions model and value of the car age of the car details of other drivers of the car. How will the following reduce moral hazard a. A no-claims bonus. b. The driver having to pay the first so many rupees of any claim called excess . c. Offering lower premiums to those less likely to claim . if a house has a burglar alarm it is less likely to be burgled and therefore the insurance premiums for its contents - TV VCR etc. can be reduced by the insurance company . In the case of a and b people will be more careful as they would incur a financial loss if the event they were insured against occurred loss of no-claims bonus paying the first so much of the claim . In the case of c it distinguishes people more accurately according to risk. It encourages people to move into the category of those less likely to claim but it does not make people more careful within a category . those with burglar alarms may be less inclined to turn them on if they are well insured . If people are generally risk averse why do so many people around the world take part in national lotteries .
