Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 20, Problem 3QCMC
To determine
The point where utilitarian believes that the redistribution is worth.
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Suppose Inequality decreases without growth of mean incomes. What may likely happen to poverty? Suppose growth of mean income occurs without a change in inequality. What may likely happen to poverty? Explain
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What is the poverty trap?
Group of answer choices
A)The situation where government assistance can result in a low or zero net gain for working.
B)The situation where a person becomes unemployed and cannot find another job.
C)The situation where a person becomes disabled and cannot work.
D)The poverty trap occurs when a person is poor, and structural discrimination prevents that person from escaping poverty.
A utilitarian believes that the redistribution ofincome from the rich to the poor is worthwhile aslong asa. the worst-off members of society benefit from it.b. those contributing to the system are in favor of it.c. each person’s income, after taxes and transfers,reflects his marginal product.d. the distortionary effect on work incentives is nottoo large.
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Principles of Economics, 7th Edition (MindTap Course List)
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- Redistribution of income occurs through the federal income tax and government antipoverty programs. Explain whether or not this level of redistribution is appropriate and whether more redistribution should occur.arrow_forwardWHAT ARE SOME POLICIES THAT A GOVERNMENT CAN IMPLEMENT TO REDUCE INCOME INEQUALITY? SELECT ALL THAT APPLY A. Increase spending in education. B. Lower tax for the top quintile. C. Stregnthen anti-discrimination laws based on race, gender, sexual orientation, marital status, religion, and disability status. D. Increase access to affordable healthcare to all. E. Encourage corporate stock ownership.arrow_forwardTRUE or FALSE 48. The location choices of big labor-intensive companies will have bearing on migration between rural and urban areas. 49. Labor turnover is faster in urban companies than in rural companies. 50. The presence of shanty towns relates to a nation’s GINI coefficient.51. Perfect inequality in the distribution of income can be exhibited in reality.arrow_forward
- This chapter discusses the importance of economicmobility.a. What policies might the government pursue toincrease economic mobility within a generation?b. What policies might the government pursue toincrease economic mobility across generations?c. Do you think we should reduce spending oncurrent welfare programs to increase spending onprograms that enhance economic mobility? Whatare some of the advantages and disadvantages ofdoing so?arrow_forwardHow does the government make an equitable/impartial/fair distribution of income? Give an example and explain why.arrow_forwarda) Consider a simple economy where 90 percent of citizens report an annual income of $10,000 while the remaining 10 percent report an annual income of $110,000. Please represent the Lorenz Curve and shade the area that is below the 45 degree line and above the Lorenz curve. What could be one reason contributing to this society’s distribution of wealth. b) Suppose every citizen earns the same amount. Please represent the Lorenz Curve. Is this kind of wealth distribution possible?arrow_forward
- Discuss the growing income inequality in the U.S. and the world with someone mature enough to have some perspective from experience about it. Ask them what they think about the widening gap between the rich and the rest of us in America, as our course materials speak of this problem. How has the economic trend for middle class Americans affected them? How as it affected you? Two examples of the marketization of society today that Sandel discusses are cash for grades and pay for getting around long lines. What, if anything, is wrong with these practices? Beyond what Sandel discusses, think of at least one social, personal, or relational good or value that you think would be negatively affected by marketization. And explain why.arrow_forwardPeople who often create benefits for the minority and impose the cost on the majot"ity are called a.fair-interest groups. b.encounter groups. c.laissez-fail'e groups. d.special-interest groups.arrow_forwardThe two figures below show trends in poverty rates and inequality for the U.S. (a) What are the trends in poverty and inequality from 2010 to 2019? (b) Is it possible to reconcile these two trends? Explain. (c) Do the figures below give us any information regarding mobility? Explain.arrow_forward
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