Your friend points to the wages earned by your economics professor and her teaching assistant (TA) as an example of income inequality. Your tenured professor earns $120,000$120,000, drives a BMW, and vacations in Europe, whereas your TA earns $10,000$10,000 per year, rides a bike, and vacations at his mom's house. Because they both teach for a living, your friend argues that this income inequality is not just.   Which reply uses the economic life cycle to respond to your friend's argument?   Your professor has more bargaining power than your TA and, therefore, has higher earnings.   Your professor and TA earn different amounts now but they will have similar earnings over the course of their lives. Your professor was once a TA, and your TA will one day make better money.   Your professor has many more responsibilities than your TA and is, therefore, paid more.   Older workers typically have more expenses than younger workers due to the high cost of healthcare and other costs that occur later in the life cycle. The differences in wages occur because older workers need more money than younger workers.

Suppose the teacher for your course, "Principles of Economics" is a libertarian and adheres strictly by its principles in running your economics class. What policies would you expect your teacher to institute? Policies a Libertarian Would Enforce Policies a Libertarian Would Not Enforce The teacher, seeing grade inequality, decides to give points from the best student's test to the worst's students test. The teacher decides to give everyone in the class an A. The teacher punishing a student for cheating on her income equality and poverty homework assignment. Grade the class on a curve to ensure even grade distribution. When proctoring a test, your teacher requires all students to be given the test face down and all turn over your tests at the same time so that no one has a time advantage.

The theory of distributive justice that I found to be the most convincing was the Utilitarianism theory. In current times there is a large amount of economic inequality. It states in the textbook, "The top 0.1 percent of American families owns 22 percent of the nation’s wealth–exactly the same share as the bottom 90 percent" (Shaw, 2017, p. 85). The Utilitarianism theory believes that there should be a greater equality of income. They believe that if there was a more equal distribution of income, then the happiness of that population would vastly increase. The textbook mentions that countries that have a more equal distribution of income tend to have lower rates of infant mortality, life expectancy, malnutrition, obesity, teenage pregnancy, economic insecurity, personal anxiety, and other measures, in comparison to countries that have a larger income inequality, such as the United States (Shaw, 2017, p. 92). It is even believed that income equality can promote economic growth (Shaw,…

The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty income threshold, or poverty line, is set at an annual income of $42,350 for an individual. Year 2006 2010 2016 2020 Quintile Lowest Lowest Quintile Second Quintile 3.0 3.4 3.8 5.0 The data in the table suggest that there was Second Middle Fourth Highest Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Highest Quintile 8.6 9.4 9.7 11.0 Share of Income in 2010 (Percent) 3.4 9.4 14.6 22.4 50.2 14.0 14.6 15.2 15.5 Complete the following table to help you determine the poverty line in Perkopia in 2010. To do this, begin by determining the total income of all individuals in each quintile, using the fact that total annual income in the economy is $500,000,000. Next, determine the income of…

Part B:  Briefly provide three reasons as to why income inequality is on the rise in Canada and the US. Secondly, briefly explain how our respective tax systems can help reduce income inequality (be specific about the type of tax you are referring to).

You have learned that poverty is an concern which the government has programs to address. An example of this might be a program which will pay a person the same wage they would receive from a full time job. A situation like this would be an example of Select the correct answer below: How the poverty line is affected. How a guaranteed income program discourages work. O How different groups are affected by poverty. How people can get stuck in a poverty trap

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