Suppose the government started a program that gave every citizen an equal access to healthcare and education. Under the program each citizen, young and elderly, would get $10,000 voucher for health care and $10,000 voucher for education. Is this equality in social resources an optimal allocation for you? If you could trade your healthcare voucher to the elderly in exchange for their education voucher, would you? What principle of economics does this scenario demonstrate? A.) Yes No The elderly would never agree to the trade B.) No Yes Trade can make everyone better off C.) Yes No There is a tradeoff between efficiency and equity
Suppose the government started a program that gave every citizen an equal access to healthcare and education. Under the program each citizen, young and elderly, would get $10,000 voucher for health care and $10,000 voucher for education. Is this equality in social resources an optimal allocation for you? If you could trade your healthcare voucher to the elderly in exchange for their education voucher, would you? What principle of economics does this scenario demonstrate? A.) Yes No The elderly would never agree to the trade B.) No Yes Trade can make everyone better off C.) Yes No There is a tradeoff between efficiency and equity
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Income Inequality And Poverty
Section: Chapter Questions
Problem 7PA
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Question
Suppose the government started a program that gave every citizen an equal access to healthcare and education. Under the program each citizen, young and elderly, would get $10,000 voucher for health care and $10,000 voucher for education.
Is this equality in social resources an optimal allocation for you?
If you could trade your healthcare voucher to the elderly in exchange for their education voucher, would you?
What principle of economics does this scenario demonstrate?
A.) Yes No The elderly would never agree to the trade |
||
B.) No Yes Trade can make everyone better off |
||
C.) Yes No There is a tradeoff between efficiency and equity |
||
D.) Yes No People think at the margin |
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