Are policies that aim to help the poor identical to policies that achieve income equality? Why or why not?
What will be an ideal response?
Policies that aim to help the poor are not synonymous with achieving income equality because a policy could help the poor without making incomes more equal. For example, the middle class could be taxed and redistributed to both the rich and the poor. Under this scenario, the gap between the rich and the poor would not narrow, although the poor would be better off. Conversely, it would be easy to achieve income equality by reducing the income of all members of society to the level of the poorest individual. This would not help the poor, however, although it would achieve perfect income equality.
You might also like to view...
Suppose that an indifference curve for Jack is drawn measuring quantities of pencils along the horizontal axis and quantities of pens along the vertical axis. If the marginal value of an additional pencil is 3 pens for Jack, the slope of his indifference curve in this range is
a. 1/3. b. 3. c. 6. d. dependent upon the prices of the two goods
Which of the following is best characterized as being nonrivalrous?
A) consumption goods B) services C) physical capital D) knowledge
When economists say the supply of a product has decreased, they mean that:
a. the supply curve has shifted to the left. b. the product price has decreased, and as a consequence, suppliers are producing less of the product. c. producers are now willing to sell more of this product at each possible price. d. the supply curve has shifted to the right.
Place point Y on the graph to indicate a deep depression.
