Suppose the government started a program that gave every citizen an equal access to healthcare and education. Under the program each citizen, young and elderly, would get $10,000 voucher for health care and $10,000 voucher for education. Is this equality in social resources an optimal allocation for you? If you could trade your healthcare voucher to the elderly in exchange for their education voucher, would you? What principle of economics does this scenario demonstrate? A.) Yes No The elderly would never agree to the trade B.) No Yes Trade can make everyone better off C.) Yes No There is a tradeoff between efficiency and equity
Suppose the government started a program that gave every citizen an equal access to healthcare and education. Under the program each citizen, young and elderly, would get $10,000 voucher for health care and $10,000 voucher for education. Is this equality in social resources an optimal allocation for you? If you could trade your healthcare voucher to the elderly in exchange for their education voucher, would you? What principle of economics does this scenario demonstrate? A.) Yes No The elderly would never agree to the trade B.) No Yes Trade can make everyone better off C.) Yes No There is a tradeoff between efficiency and equity
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter1: The Economic Approach
Section: Chapter Questions
Problem 3CQ
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Question
Suppose the government started a program that gave every citizen an equal access to healthcare and education. Under the program each citizen, young and elderly, would get $10,000 voucher for health care and $10,000 voucher for education.
Is this equality in social resources an optimal allocation for you?
If you could trade your healthcare voucher to the elderly in exchange for their education voucher, would you?
What principle of economics does this scenario demonstrate?
A.) Yes No The elderly would never agree to the trade |
||
B.) No Yes Trade can make everyone better off |
||
C.) Yes No There is a tradeoff between efficiency and equity |
||
D.) Yes No People think at the margin |
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