Final answer:
Income redistribution poses challenges in efficiently allocating resources and determining fair income distribution.
Explanation:
Two problems associated with income redistribution:
- Efficiency of Resource Allocation: It can be challenging to determine if resources are allocated efficiently through income redistribution, potentially leading to misallocation.
- Fairness of Income Distribution: Deciding what constitutes fair income distribution is subjective and can vary, impacting the effectiveness of income redistribution policies.
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