Principles of Microeconomics 7th Edition solutions

Principles of Microeconomics 7
Table 2 shows that income inequality in the United States has increased since 1970. Some factors contrib-uting to this increase were discussed in Chapter 19. What are they?

Principles of Microeconomics 7
Table 3 shows that the percentage of children in fami-lies with income below the poverty line far exceeds the percentage of the elderly in such families. How might the allocation of government money across different social programs have contributed to this phenomenon? (Hint: See Chapter 12.)

Principles of Microeconomics 7
This chapter discusses the importance of economic mobility.a.What policies might the government pursue to increase economic mobility within a generation?b.What policies might the government pursue to increase economic mobility across generations?c.Do you think we should reduce spending on cur-rent

Principles of Microeconomics 7
Consider two communities. In one community, ten families have incomes of $100,000 each and ten fami-lies have incomes of $20,000 each. In the other com-munity, ten families have incomes of $200,000 each and ten families have incomes of $22,000 each.a.In which community is the distribution of income m

Principles of Microeconomics 7
This chapter uses the analogy of a leaky bucket to explain one constraint on the redistribution of income.a.What elements of the U.S. system for redistributing income create the leaks in the bucket? Be specific.b.Do you think that Republicans or Democrats gener-ally believe that the bucket used for r

Principles of Microeconomics 7
Suppose there are two possible income distributions in a society of ten people. In the first distribution, nine people have incomes of $30,000 and one person has an income of $10,000. In the second distribution, all ten people have incomes of $25,000.a.If the society had the first income distribution

Principles of Microeconomics 7
The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Lets say the program costs $10,000 per recipi-ent family.a.If the government gave each recipient fa

Principles of Microeconomics 7
Consider two of the income security programs in the United States: TANF and the EITC.a.When a woman with children and very low income earns an extra dollar, she receives less in TANF benefits. What do you think is the effect of this feature of TANF on the labor supply of low-income women? Explain.b.T