Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 22APA
(a)
To determine
Computers and robots and the increased inequality.
(b)
To determine
Free education and impact on the wage rate of high-skilled, high-paid labors.
(c)
To determine
Graphical representation of free education and impact on the wage rate of high-skilled, high-paid labors and low-skilled labors.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Your friend points to the wages earned by your economics professor and her teaching assistant (TA) as an example of income inequality. Your tenured professor earns $120,000$120,000, drives a BMW, and vacations in Europe, whereas your TA earns $10,000$10,000 per year, rides a bike, and vacations at his mom's house. Because they both teach for a living, your friend argues that this income inequality is not just.
Which reply uses the economic life cycle to respond to your friend's argument?
Your professor has more bargaining power than your TA and, therefore, has higher earnings.
Your professor and TA earn different amounts now but they will have similar earnings over the course of their lives. Your professor was once a TA, and your TA will one day make better money.
Your professor has many more responsibilities than your TA and is, therefore, paid more.
Older workers typically have more expenses than younger workers due to the high cost of healthcare and other costs…
Explain the reasons for rising income inequality in the United States. If there are arguments countering a reason, explain these arguments as well.
Chapter 7 fromThe Textbook: Labor Economics, 8th Edition, by George Borjas, published by McGraw-Hill.
Answer this question under 100 words and draw a Lorenz graph to explain it.
In the Financial Times’ article “How the pandemic is worsening inequality” (31 Dec 2020) we can read:
“About 600m people work globally in the hardest-hit sectors such as hospitality and retail [...]. In addition, the informal economy has been hard-hit – and that is where some of the world’s most vulnerable workers are employed.
[...] At the height of the pandemic-induced surge in unemployment, joblessness among people aged 15 to 24 in OECD countries was 7.5 percentage points higher than the start of this year, whereas among those aged 25 and over it rose by 3.2 percentage points. Pandemic-induced job losses have potentially long-lasting consequences: people who start their career during a recession experience lower earnings for a decade after graduation.
[...] Around the world, relatively privileged workers have avoided the worst of the pandemic’s economic impact. Up to 40 per cent of those in the ILO’s top…
Chapter 19 Solutions
Macroeconomics
Ch. 19.1 - Prob. 1RQCh. 19.1 - Prob. 2RQCh. 19.1 - Prob. 3RQCh. 19.1 - Prob. 4RQCh. 19.1 - Prob. 5RQCh. 19.2 - Prob. 1RQCh. 19.2 - Prob. 2RQCh. 19.2 - Prob. 3RQCh. 19.3 - Prob. 1RQCh. 19.3 - Prob. 2RQ
Ch. 19.3 - Prob. 3RQCh. 19.3 - Prob. 4RQCh. 19.3 - Prob. 5RQCh. 19.4 - Prob. 1RQCh. 19.4 - Prob. 2RQCh. 19.4 - Prob. 3RQCh. 19 - Prob. 1SPACh. 19 - Prob. 2SPACh. 19 - Prob. 3SPACh. 19 - Prob. 4SPACh. 19 - Prob. 5SPACh. 19 - Prob. 6SPACh. 19 - Use the following table to work Problems 7 and 8....Ch. 19 - Prob. 8SPACh. 19 - Prob. 9APACh. 19 - Prob. 10APACh. 19 - Prob. 11APACh. 19 - Prob. 12APACh. 19 - Prob. 13APACh. 19 - Prob. 14APACh. 19 - Prob. 15APACh. 19 - Prob. 16APACh. 19 - Prob. 17APACh. 19 - Prob. 18APACh. 19 - Prob. 19APACh. 19 - Prob. 20APACh. 19 - Prob. 21APACh. 19 - Prob. 22APACh. 19 - Prob. 23APA
Knowledge Booster
Similar questions
- Describe how a push for economic equality might reduce incentives to work and produce output. Then describe how a push for economic inequality might nut have such effects.arrow_forwardWe have discovered that the welfare system discourages recipients from working because the more income they earn, the less welfare benefits they receive. How does the earned income tax credit attempt to loosen the poverty trap?arrow_forwardSadie T.M. Alexander (1898-1989) was the first black woman in the U.S. to receive a PhD in Economics (1921). Alexander wrote and spoke extensively on economic and racial justice. She emphasized that black Americans experienced disproportionate income losses during the Great Depression of the 1930s relative to white Americans and that income inequality may have contributed to the Depression: Our economy went into a downward spiral… because our distribution of income was such that the masses had no income to purchase goods and the investors refused to place their income and capital in industry because there was no one with money to buy the products. (Alexander 1945 as cited in Banks 2008). She also objected to high unemployment: She saw it as leading to heightened discrimination against black workers and argued in favor of “the right of all individuals to earn a decent living” (circa 1930s/40s as cited in Banks 2008). Is Alexander’s position on the ethics of labor market and income…arrow_forward
- Discuss the reasons behind economic inequality.arrow_forwardWould free health care reduce poverty, as measured by the government? Would free public housing, daycare, and job training for the poor reduce the poverty rate? Explainarrow_forwardWhat is a poverty trap? How could a household become stuck in a poverty trap? Give one paragraph (short) explanations for each of the above questions.arrow_forward
- What is the difference between income inequality and wealth inequality? Can a household with a high income have a low amount of wealth and vice versa? How?arrow_forwardWhat are the main reasons economists give for the increase in inequality of incomes?arrow_forwardWhat are some reasons why a certain degree of inequality of income would be expected in a market economy?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMicroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningPrinciples of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning