PRINCIPLES OF MICROECONOMICS (OER)
2nd Edition
ISBN: 9781947172340
Author: Timothy Taylor, Steven A. Greenlaw
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 15, Problem 10SCQ
Here is one hypothesis: A well-funded social safety net can increase economic equality but will reduce economic output. Explain why this might be so, and sketch a
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Mark Zuckerberg of Facebook and Elon Musk of Space X have taken risks to build to their businesses and been successful at it. The fundamental premise for their success mostly hinges on the ownership of private property and free market forces. For billionaires like them who have made their wealth mostly based on their own effort and perseverance, would it be fair to impose high income tax on them to redistribute their wealth to help the poor?
Why does Chang (2011) argue that there is no such thing as a free market? Why is immigration central to what a free market means?
Now suppose that there is mobility in the labour market in country Alpha and we are in the pre-minimum wage period. Country Alpha receives migrants from country Beta and these migrants are positively selected.
Suppose country Alpha decides to adopt a welfare program to increase the minimum income of its workers. This minimum income is granted to all native workers, immigrant workers, and the new incoming immigrants. Using the Roy model, and ignoring how the program is funded, with the aid of a diagram, discuss how the welfare program changes the selection of the immigrant flow to country Alpha
Chapter 15 Solutions
PRINCIPLES OF MICROECONOMICS (OER)
Ch. 15 - Describe how each of these changes is likely to...Ch. 15 - Jonathan is a single father with one child. He can...Ch. 15 - Imagine that the government reworks the welfare...Ch. 15 - We have discovered that the welfare system...Ch. 15 - How does the TANF attempt to loosen the poverty...Ch. 15 - A group 0f 10 people have the following annual...Ch. 15 - Table 15.9 shows the share of income going to each...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Here is one hypothesis: A well-funded social...
Ch. 15 - Here is a second hypothesis: A well-funded social...Ch. 15 - Which set of policies is more likely to cause a...Ch. 15 - Why is there reluctance on the part of some in the...Ch. 15 - How is the poverty rate calculated?Ch. 15 - What is the poverty line?Ch. 15 - What is the difference between poverty and income...Ch. 15 - How does the poverty trap discourage people from...Ch. 15 - How can the effect of the poverty trap be reduced?Ch. 15 - Who are the near-poor?Ch. 15 - What is the safety net?Ch. 15 - Briefly explain the differences between TANF, the...Ch. 15 - Who is included in the top income quintile?Ch. 15 - What is measured on the two axes of a Lorenz...Ch. 15 - If a country had perfect income equality what...Ch. 15 - How has the inequality of income changed in the...Ch. 15 - What are some reasons why a certain degree of...Ch. 15 - What are the main reasons economists give for the...Ch. 15 - Identify some public policies that can reduce the...Ch. 15 - Describe how a push for economic equality might...Ch. 15 - What goods and services would you include in an...Ch. 15 - If a family of three earned 20,000, would they be...Ch. 15 - Exercise 15.2 and Exercise 15.3 asked you to...Ch. 15 - Explain how you would create a government program...Ch. 15 - Many critics of government programs to help...Ch. 15 - Think about the business cycle: during a...Ch. 15 - Explain how a country may experience greater...Ch. 15 - The demand for skilled workers in the United...Ch. 15 - Explain a situation using the supply and demand...Ch. 15 - What do you think is more important to focus on...Ch. 15 - To reduce income inequality, should the marginal...Ch. 15 - Redistribution of income occurs through the...Ch. 15 - How does a society or a country make the decision...Ch. 15 - Explain what the long- and short-term consequences...Ch. 15 - In country A, the population is 300 million and 50...Ch. 15 - In country B, the population is 900 million and...Ch. 15 - Susan is a single mother with three children. She...Ch. 15 - A group of 10 people have the following annual...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E2-13 Identifying increases and decreases in accounts and normal balances
Learning Objective 2
Insert the mis...
Horngren's Accounting (11th Edition)
Managers in decentralized organizations make decisions relating to all of the following except_______. A. the c...
Principles of Accounting Volume 2
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (5th Edition)
P2-33A Correcting errors in a trial balance
Learnmg Objective 4
Total Deb|ts $123,250
The tr...
Horngren's Accounting (12th Edition)
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
What are the four elements of the budgeting cycle?
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Knowledge Booster
Similar questions
- In social welfare programs, there is no way to change either the benefit reduction rate or the benefit guarantee to simultaneously achieve all three goals of encouraging work, redistributing more income and lowering costs. What is this dilemma called?arrow_forwardWhich set of policies is more likely to cause a tradeoff between economic output and equality: policies of redistribution or policies aimed at the ladder of opportunity? Explain how the production possibility frontier tradeoff between economic equality and output might look in each case.arrow_forwardWould reducing inequality have any benefits for society in general? Specifically, would reducing inequality benefit middle class and upper class households? If so, how?arrow_forward
- 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_forwardIncome 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_forwardNow suppose that there is mobility in the labour market in country Alpha and we are in the pre-minimum wage period. Country Alpha receives migrants from country Beta and these migrants are positively selected. a) If we believe in the Roy model, do you expect country Alpha or country Beta to have a higher income inequality? b) Suppose country Alpha decides to adopt a welfare program to increase the minimum income of its workers. This minimum income is granted to all native workers, immigrant workers, and the new incoming immigrants. Using the Roy model, and ignoring how the program is funded, with the aid of a diagram, discuss how the welfare program changes the selection of the immigrant flow to country Alphaarrow_forward
- Which 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_forwardHow do factor endowments affect personal income? Examine different provisions employed by the government in dealing with inequality in the distribution of income.arrow_forwardOn December 30, 1974, the hypothetical country Alpha decided to introduce a minimum wage policy. Cities with ID numbers 11, 23, 45, 57, 60, and 61 were randomly chosen to implement this minimum wage policy. The remaining cities in country Alpha did not adopt a minimum wage policy. You are asked to empirically and theoretically evaluate the impact of the introduction of the minimum wage in country Alpha on the labour market outcomes. Now suppose that there is mobility in the labour market in country Alpha and we are in the pre-minimum wage period. Country Alpha receives migrants from country Beta and these migrants are positively selected. a) Suppose country Alpha decides to adopt a welfare program to increase the minimum income of its workers. This minimum income is granted to all native workers, immigrant workers, and the new incoming immigrants. Using the Roy model, and ignoring how the program is funded, with the aid of a diagram, discuss how the welfare program changes the…arrow_forward
- In the United States, the working-age population does not include people: Multiple Choice in the military. who are 16 years of age. who do not have a driver’s license. who are 65 years of age. The labor supply curve: Multiple Choice shows the relationship between the total quantity of labor supplied by all firms in the economy and the wage rate. shows that, all things being equal, more workers will want to work when wages are higher and fewer will want to work when wages are lower. has a negative slope. All of these are true.arrow_forwardOn December 30, 1974, the hypothetical country Alpha decided to introduce a minimum wage policy. Cities with ID numbers 11, 23, 45, 57, 60, and 61 were randomly chosen to implement this minimum wage policy. The remaining cities in country Alpha did not adopt a minimum wage policy. You are asked to empirically and theoretically evaluate the impact of the introduction of the minimum wage in country Alpha on the labour market outcomes. Assuming there is no labour mobility and using the basic model of minimum wage, how do you expect the introduction of this policy to change the existing equilibrium wage and employment rate in the affected cities?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Survey of Economics (MindTap Course List)EconomicsISBN:9781305260948Author:Irvin B. TuckerPublisher:Cengage Learning
Survey of Economics (MindTap Course List)
Economics
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Cengage Learning