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Consider two communities. In one community, ten families have incomes of $100,000 each and ten families have incomes of $20,000 each. In the other community, ten families have incomes of $200,000 each ten families have incomes of $22,000 each.
a. In which community is the distribution of income more unequal? In which community is the problem of poverty likely to be worse?
b. Which distribution of income would Rawls prefer? Explain.
c. Which distribution of income do you prefer? Explain.
d. Why might someone have the opposite preference?
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For the no colluding oligopolist, there are two factors that affect the decision to raise production.
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Which of the following groups are likely to have the highest tax elasticity of labor supply: a) college students, b) single parents, c) primary earners in two-parent families, d) secondary earners in two-parent families, or e) retired people with ave..
Why does a portion of Chinese residents' expenditures on goods and services exported from the United States to China likely add to the earnings of Chinese firms and those firms' managers and workers?
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