Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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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.
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