In-country 2, each month everyone is sent $7000 by the government, and no one can earn anything above that income (although they can spend it on whatever they want). In-country 3, there is a small percentage of people that make $100,000 a month, but everyone else earns between $6,000 and $10,000 a month. Which of the two countries would John Rawls argue is more just? Using evidence from the class and readings, why or why not?
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H10.
In-country 2, each month everyone is sent $7000 by the government, and no one can earn anything above that income (although they can spend it on whatever they want). In-country 3, there is a small percentage of people that make $100,000 a month, but everyone else earns between $6,000 and $10,000 a month.
Which of the two countries would John Rawls argue is more just? Using evidence from the class and readings, why or why not?
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- TRUE/FALSE. In Steinem's "Equal Rights for Women-Yes & No," she blames all men for sexism and opposing feminism, and dubs men as "enemies of the people." True FalseSuppose the village of Utopia has 5 households, with expenditure levels [1, 4, 5, 9 and 13]. Suppose the poverty line is 5. Draw the poverty profile for Utopia, including the poverty line. Calculate P0, P1, and P2 for this village. Suppose you have a budget of 4 to spend on reducing poverty in this village. How you would allocate this budget if your objective was to mostly reduce P0, P1, or P2, respectively?You can either take a bus or drive your car to work. A bus pass costs $5 per week, whereas driving your car to work costs $60 weekly (parking, tolls, gas, etc.). You spend half an hour less on a one-way trip in your car than on a bus. How would you prefer to travel to work if your wage rate is $10 per hour? Will you change your preferred mode of transportation if your wage rate rises to $20 per hour? Assume you work five days a week and time spent riding on a bus or driving a car does not directly enter your utility.
- Polly, Molly, and Dolly are all single mothers. They each can earn $10 per hour working for up to 2,000 hours per year. Their government runs a welfare system that gives income benefits of $5,000 per year for single mothers with no income. The welfare benefits are reduced by $1 for every $2 in earned income. Currently, the government also provides free health care for children of single mothers with less than $25,000 in income. Each mother values this benefit at $2,000 per year. Under this system, Polly works 200 hours per year, Molly works 1,025 hours per year, and Dolly works 1,500 hours, so only Polly receives welfare. b. Draw a representative indifference curve for each mother. Discuss how the welfare program changes the behavior of these three individuals. d. The government decides to remove the welfare lock by providing free low- quality public health care (Ho-$2,000) for everyone. If the individuals want to consumer health care more than Ho, they have to turn to private health…The Environmental Protection Agency (EPA) wants to investigate the value workers place on being able to work in “clean” mines over “dirty” mines. The EPA conductsa study and finds the average annual wage in clean mines to be $42,250 and the average annual wage in dirty mines to be $47,250.a. According to the EPA, how much does the average worker value working in a clean mine?b. Suppose the EPA could mandate that all dirty mines become clean mines and that all workers who were in a dirty mine must therefore accept a $5,000 pay decrease. Are these workers helped by the intervention, hurt by the intervention, or i ndifferent to the intervention?One of the problems of allowing goods and services to be distributed solely by the market is that income is unequally distributed, especially here in the US. Why would the market produce an inadequate level of some goods and services, which society might view as critical for peoples’ well being, while at the same time, use a significant quantity of resources to produce goods and services that contributed little to society’s overall well being? Your answer should contain at least two examples of goods and services that are critical and inadequately produced and two examples of goods and services that are largely wasteful and overproduced (4 examples in total). Remember your answer should revolve around the distribution of income, and should be focused only on the United States.
- Assume a society consists of two economic groups: one group is rich and the other group is poor. Suppose that 50 percent of the population is rich while the other 50 percent of the population is poor. Consider two scenarios. Scenario A: The rich have $80,000 each, while the poor have $5,000 each. Scenario B: The rich have $11,000 each, while the poor have $900 each. If you only care about average income and not about equity, you would prefer ▼ Scenario A Scenario B , which has an average income of $........?? (Enter your response to the nearest dollar.) Now suppose that you only care about equity or inequality. In this case, you would prefer ▼ Scenario B Scenario A , which has a rich-to-poor ratio of .........?? (Round your response to one decimal place.) Finally, suppose you only care about living standards. In this case, you would prefer ▼ Scenario A Scenario B because it has lower poverty.There are four types of people: 1. Type 1 (100): Can earn $5 per hour 2. Type 2 (400): Can earn $10 per hour 3. Type 3 (400): Can earn $25 per hour 4. Type 4 (100): Can earn $100 per hour Washington B.C. is a city with 1,000 people. People who work work 40 hours per week. People choose how many weeks they work and can work up to 50 weeks per year. Washington B.C. initially has no tax and transfer programs. Continue to assume no Washington income tax, and Washington has a $4M grant to spend. Zoe Wu tells the mayor that a means-tested program would allow the poor to get more money. She suggests that benefits should be redunced by $10 for each $100 in workers’ pre-tax income. 1. Suppose the guarantee rate is G. How much benefit would each group get at their original income (working 40 weeks) in terms of G? 2. With the $4M grant, how large can G be? How much benefit does each group get? What is the maximum income in the phase-out region? 3. Draw the benefit schedule with labels. 4.…Is it just to tax the rich to give to the poor? Should the government tax Bill Gates and other wealthy people and use the money to supplement the income of unemployed people, single mothers with low incomes, or other poor people? Should the government tax rich people and loan the money interest free to poor kids so that they can go to college? Or would all of that be unjust? Make sure to mention ethical egoism, and altruism in your answer.
- Fill in the blanks with options below the sentence In 1965, the federal government established __________to provide minimal health care for senior citizens. It also established_________to provide health care for people in lower-income catergories Medicare, FEMA, the ACA, MedicaidYou must show your work or you may not get credit. You are the economic advisor of the ruler of Pongo. Suppose the people in the country of Pongo loves eating worms and pine cones. The price of a worm is $2 and the price of a pine cone is $6. As this land is ruled by the super awesome and awesomely benevolent Dr. Lee, he ensures all people have $24,000 each day to spend on worms and pine cones. All the people have the same marginal rate of substitution for worms and pine cones which is presented below: MRS = [MU(Worms)/MU(Pine Cones)] = 4(Qw/Qp) Please help the super awesome leader make his people as happy as possible subject to the information provided above. Specifically, how many worms and pine cones should each person eat per day? [Hint: Maximize happiness subject to budget constraint.]Imagine someone living close to the poverty line in a developing country. This person runs a small business filtering and selling water. Her daughter gets sick, and she has to sell her filtering machine to pay for treatment. Now she makes very little money cleaning fish for a local fishing cooperative. Graph her income today versus her income tomorrow before her daughter got sick. Explain your assumptions with labels on the graph. Then graph what happens to the equilibrium after her daughter gets sick. Hint: this is an example of a trap.