Chapter 15: Problem 43
Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.
Chapter 15: Problem 43
Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.
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Get started for freeIn country \(\mathrm{B}\), the population is 900 million and 100 million people are living below the poverty line. What is the poverty rate?
Explain a situation using the supply and demand for skilled labor in which the increased number of college graduates leads to depressed wages. Given the rising cost of going to college, explain why a college education will or will not increase income inequality.
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 production possibility curve that shows this trade-off.
What are some reasons why a certain degree of inequality of income would be expected in a market economy?
Think about the business cycle: during a recession, unemployment increases; it decreases in an expansionary phase. Explain what happens to TANF, SNAP, and Medicaid programs at each phase of the business cycle (recession, trough, expansion, and peak).
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