- 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
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Since 47 problems in chapter 14: Poverty and Economic Inequality have been answered, more than 6051 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
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adverse selection
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
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average total cost
total cost divided by the quantity of output
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business cycle
fluctuations in economic activity, such as employment and production
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capital
the equipment and structures used to produce goods and services
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Condorcet paradox
the failure of majority rule to produce transitive preferences for society
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crowding out
a decrease in investment that results from government borrowing
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free rider
a person who receives the benefit of a good but avoids paying for it
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imports
goods produced abroad and sold domestically
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inferior good
a good for which, other things being equal, an increase in income leads to a decrease in demand
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labor-force participation rate
the percentage of the adult population that is in the labor force
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maximin criterion
the claim that the government should aim to maximize the well-being of the worst-off person in society
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median voter theorem
a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
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monopolistic competition
a market structure in which many firms sell products that are similar but not identical
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normal good
a good for which, other things being equal, an increase in income leads to an increase in demand
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public goods
goods that are neither excludable nor rival in consumption
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purchasing-power parity
a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries
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reserve requirements
regulations on the minimum amount of reserves that banks must hold against deposits
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trade balance
the value of a nation’s exports minus the value of its imports; also called net exports
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welfare
government programs that supplement the incomes of the needy welfare economics the study of how the allocation of resources affects economic well-being
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world price
the price of a good that prevails in the world market for that good