In the United States the distribution of income is relatively unequal, and output is relatively high, while in the former Soviet Union the distribution of income was more equal and output per worker was much lower. Give one possible explanation for this phenomenon.
What will be an ideal response?
This problem illustrates the trade-off between efficiency and equality. Workers in the Soviet Union were guaranteed jobs and decent wages regardless of their work effort, and thus they had less incentive to reach higher levels of productivity. In the United States, generally speaking, workers receive greater rewards for greater effort, and thus output per workers tends to be higher.
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According to U.S. law, domestic firms can obtain protection from foreign dumping, even if this protection is harmful to overall U.S. welfare
Indicate whether the statement is true or false
If Fred's marginal rate of substitution of salad for pizza equals 5, then
A) he would give up 5 pizzas to get the next salad. B) he would give up 5 salads to get the next pizza. C) he will eat five times as much pizza as salad. D) he will eat five times as much salad as pizza.
The rate at which a consumer must give up y to get one more x is equal to
A) -Px/Py. B) -Py/Px. C) -MUx/MUy. D) MUy/MUx.
The "underemployed" are counted as "unemployed."
Indicate whether the statement is true or false