PRINC OF ECONOMICS PKG >CUSTOM<
7th Edition
ISBN: 9781305018549
Author: Mankiw
Publisher: CENGAGE C
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Question
Chapter 20, Problem 4CQQ
To determine
The 'original position' behind the veil of ignorance.
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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.
Henry George and William Graham Sumner both wrote in the late nineteenth century about poverty and inequality in the industrial era, but from very different angles. How did each of these men view the situation, and what response from the government did they advocate? (Please do NOT answer this question by searching for the life stories of these two men. Please just summarize their ideas concisely, based on your comprehension of them.)
Assume a society consists of two economic groups: one group is rich and the other group is poor. Suppose that
50
percent of the population is rich while the other
50
percent of the population is poor. Consider two scenarios.
Scenario A: The rich have
$80,000
each, while the poor have
$5,000
each.
Scenario B: The rich have
$11,000
each, while the poor have
$900
each.
If you only care about average income and not about equity, you would prefer
▼
Scenario A
Scenario B
,
which has an average income of
$........??
(Enter
your response to the nearest
dollar.)
Now suppose that you only care about equity or inequality.
In this case, you would prefer
▼
Scenario B
Scenario A
,
which has a rich-to-poor ratio of
.........??
(Round
your response to one decimal
place.)
Finally, suppose you only care about living standards.
In this case, you would prefer
▼
Scenario A
Scenario B
because it has lower poverty.
Chapter 20 Solutions
PRINC OF ECONOMICS PKG >CUSTOM<
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Similar questions
- 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.arrow_forward[Make sure your answer is structured as a short essay, i.e., with short introduction (3-4 sentences), outlining each reason in a short paragraph, and a brief conclusion (2-3 sentences)]. Suppose you are advising the government of Nigeria on effective poverty reduction strategies for the country. The policy makers strongly believe that rapid economic growth is the most effective channel to reduce poverty. They also argue that the same strategy would also reduce inequality. What would be your advice to the Nigerian government in this context? Would you endorse their proposition? Why or why not? Give at least three reasons in support of your recommendation, making precise use of the concepts related to the relationship between poverty, inequality and economic growth.arrow_forwardExplain "Fairness and Equality or giving all the people same opportunity".arrow_forward
- That theories are related to poverty or how the rise in food prices affect the vulnerable population?arrow_forwardSuppose that Eric believes that the government should aim to raise the welfare of the poorest people in society, because if we all started in the exact same position in life and then created rules and laws to obey as a society, people would be concerned about ending up at the bottom of the income distribution. Which redistributive philosophy is consistent with Eric's view? Utilitarianism Liberalism Libertarianism.arrow_forwardWhich of the following statements is not correct? Select one: a. The economic life cycle theory explains why gifts of goods and services reduce poverty for the very young and the very old. b. Because people can borrow and save to smooth out changes in income, their standard of living in any one year depends more on lifetime income than on a particular year's income. c. The percentage of the population that suffers from long-term poverty is far smaller than the percentage of the population that suffers from short-term poverty because there is a high level of economic mobility in the United States. d. Permanent income is a better measure of a family's ability to buy the necessities of life than is transitory income.arrow_forward
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- Would reducing inequality have any benefits for society in general? Specifically, would reducing inequality benefit middle class and upper class households? If so, how? Do you think it likely that attempts to reduce income inequality would reduce people's incentives to work? Why or why not? please put the resourcesarrow_forwardThe theory of distributive justice that I found most convincing was the process of Utilitarianism. While I do agree partially with the Libertarian theory in regard to the sense of personal choice and freedom, I find the outcome of Utilitarianism to be most feasible. The feeling of collective social involvement, and working towards a distributive process with an outcome of happiness can help gauge overall community satisfaction. Regarding economic distribution, Utilitarianism has deemed the increase of worker participation to assist collective agreement of distribution. "...many utilitarians would favorably view increased worker participation in industrial life and more equal distribution of income." (W.H. Shaw, 2017, p.91) I highly agree with this form of economic distribution. I feel as if Utilitarianism provides a structure for increased worker production that can positively influence society as a whole, while simultaneously improving the economy. Personally, I desire a structure…arrow_forwardWhy are the poorest members of society the greatest beneficiaries in the Difference principle of John Rawls?arrow_forward
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