- 14.1: Describe how each of these changes is likely to affect poverty and ...
- 14.2: Jonathon is a single father with one child. He can work as a server...
- 14.3: Imagine that the government reworks the welfare policy that was aff...
- 14.4: We have discovered that the welfare system discourages recipients f...
- 14.5: How does the TANF attempt to loosen the poverty trap?
- 14.6: A group of 10 people have the following annual incomes: $24,000, $1...
- 14.7: Table 14.9 shows the share of income going to each quintile of the ...
- 14.8: Using two demand and supply diagrams, one for the low-wage labor ma...
- 14.9: Using two demand and supply diagrams, one for the low-wage labor ma...
- 14.10: Here is one hypothesis: A well-funded social safety net can increas...
- 14.11: Here is a second hypothesis: A well-funded social safety net may le...
- 14.12: Which set of policies is more likely to cause a tradeoff between ec...
- 14.13: Why is there reluctance on the part of some in the United States to...
- 14.14: How is the poverty rate calculated?
- 14.15: What is the poverty line?
- 14.16: What is the difference between poverty and income inequality?
- 14.17: How does the poverty trap discourage people from working?
- 14.18: How can the effect of the poverty trap be reduced?
- 14.19: Who are the near-poor?
- 14.20: What is the safety net?
- 14.21: Briefly explain the differences between TANF, the earned income tax...
- 14.22: Who is included in the top income quintile?
- 14.23: What is measured on the two axes of a Lorenz curve?
- 14.24: If a country had perfect income equality what would the Lorenz curv...
- 14.25: How has the inequality of income changed in the U.S. economy since ...
- 14.26: What are some reasons why a certain degree of inequality of income ...
- 14.27: What are the main reasons economists give for the increase in inequ...
- 14.28: Identify some public policies that can reduce the level of economic...
- 14.29: Describe how a push for economic equality might reduce incentives t...
- 14.30: What goods and services would you include in an estimate of the bas...
- 14.31: If a family of three earned $20,000, would they be able to make end...
- 14.32: Exercise 14.2 and Exercise 14.3 asked you to describe the labor-lei...
- 14.33: Explain how you would create a government program that would give a...
- 14.34: Many critics of government programs to help lowincome individuals a...
- 14.35: Think about the business cycle: during a recession, unemployment in...
- 14.36: Explain how a country may experience greater equality in the distri...
- 14.37: The demand for skilled workers in the United States has been increa...
- 14.38: Explain a situation using the supply and demand for skilled labor i...
- 14.39: What do you think is more important to focus on when considering in...
- 14.40: To reduce income inequality, should the marginal tax rates on the t...
- 14.41: Redistribution of income occurs through the federal income tax and ...
- 14.42: How does a society or a country make the decision about the tradeof...
- 14.43: Explain what the long- and short-term consequences are of not promo...
- 14.44: In country A, the population is 300 million and 50 million people a...
- 14.45: In country B, the population is 900 million and 100 million people ...
- 14.46: Susan is a single mother with three children. She can earn $8 per h...
- 14.47: A group of 10 people have the following annual incomes: $55,000, $3...
Solutions for Chapter 14: Poverty and Economic Inequality
Full solutions for Principles of Economics | 1st Edition
ISBN: 9781938168239
Solutions for Chapter 14
11
0
Since 47 problems in chapter 14: Poverty and Economic Inequality have been answered, more than 12596 students have viewed full step-by-step solutions from this chapter. Chapter 14: Poverty and Economic Inequality includes 47 full step-by-step solutions. This textbook survival guide was created for the textbook: Principles of Economics, edition: 1. This expansive textbook survival guide covers the following chapters and their solutions. Principles of Economics was written by and is associated to the ISBN: 9781938168239.
Key Business Terms and definitions covered in this textbook
-
ability-to-pay principle
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
-
adverse selection
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
-
agent
a person who is performing an act for another person, called the principal
-
automatic stabilizers
changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action
-
benefits principle
the idea that people should pay taxes based on the benefits they receive from government services
-
cartel
a group of firms acting in unison
-
catch-up effect
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
-
equilibrium price
the price that balances quantity supplied and quantity demanded
-
life cycle
the regular pattern of income variation over a person’s life
-
liquidity
the ease with which an asset can be converted into the economy’s medium of exchange
-
microeconomics
the study of how households and firms make decisions and how they interact in markets
-
natural monopoly
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
-
natural monopoly
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
-
price ceiling
a legal maximum on the price at which a good can be sold
-
rivalry in consumption
the property of a good whereby one person’s use diminishes other people’s use
-
shortage
a situation in which quantity demanded is greater than quantity supplied
-
sunk cost
a cost that has already been committed and cannot be recovered
-
supply curve
a graph of the relationship between the price of a good and the quantity supplied
-
Tragedy of the Commons
a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole
-
utility
a measure of happiness or satisfaction