Answer to Question #155877 in Microeconomics for rethabile mohale

Question

Is there a trade-off between freedom, happiness and income equality

Answer 1

There is a trade-off between freedom, happiness and income equality.This is because when there is freedom from government regulations or competition, income inequality increases where by the income inequality have negative effects on life satisfaction hence little or no happiness. To conclude increase in freedom increases income equality thereby decreasing happiness.