MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
17th Edition
ISBN: 9780134081168
Author: CASE, Karl E.; Fair, Ray C.; Oster, Sharon E.
Publisher: PEARSON
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Chapter 21, Problem 2.8P
To determine
Why the inequality of income is higher in capitalist economy than the socialist economy.
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Students have asked these similar questions
Suppose 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.
Explain why a capitalist economic system tends to bring about a highly unequal distribution of income. Why did income inequality rise significantly in the U.S. after about 1980?
That theories are related to poverty or how the rise in food prices affect the vulnerable population?
Chapter 21 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
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- Income inequality is necessary for Pareto optimality so that people will work as hard as they can.” “If income is distributed equally, then there must be Pareto optimality because you can’t make one person better off without making someone else worse off.” Are these statements true or false? Why or why not?arrow_forwardIf a society decides to reduce the level of economic inequality, which of the following would help accomplish this? Question 24 options: higher estate taxes spending on lower income schools redistribution from those with high incomes to those with low incomes all of the abovearrow_forwardIndicate True (T) or False (F) for the following question, and explain your answer in 50 words "If a society wishes to achieve a high degree of efficiency, then it must also accept a high level of inequality."arrow_forward
- During the 1970s, the wages of high school graduates rose more than the wages of college graduates. During that same time, the fraction of high school graduates enrolling in college decreased substantially. Is this decrease in the college enrollment rate consistent with the human capital model of education? Explain (make sure to explain what the human capital model of education is as part of your answer.arrow_forwardExplain why extreme poverty exists using one of the following perspectives: 1. functionalist, 2.conflict, 3.interactionistarrow_forwardWhich of the following would be an example of economic equity? Everyone makes as much money as the market allows. A doctor gets paid more than a custodian, but the custodian still makes a livable salary for their work. Everyone would get a monthly $1,000 check from the government. Everyone who worked would be paid the same.arrow_forward
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