Equity, Poverty and Redistribution
34 questions· page 1 of 4
Assess the suggestion that a free market economy is neither possible nor desirable.
‘Wage differentials can be explained by economic theory. They are a sign of the power of a firm to exploit its workforce and are unjust.’
Do you agree with this view?
The article says that many in the US believe that inequality is not equitable.
What is the difference between equality and equity?
Consider whether the changes in real annual pay shown in Fig. 1.1 support the idea of rising inequality in the US.
The article refers to a reduction of inequality through taxation. Discuss the effectiveness of fiscal policy in redistributing income.
Governments want to increase the standard of living in their country.
Discuss whether the indicators used to measure the standard of living are reliable and consider what policies a government might use to try to increase the standard of living in its country.
‘Wage rate inequalities are inevitable and can be justified.’
Discuss whether this statement can be supported by economic theory.
Consider whether Table 1.1 supports the conclusion that greater inequality of incomes is linked to poor literacy ratios of females to males and leads to greater poverty.
Use one example of a supply-side policy and one example of a fiscal policy to assess how a government might be able to achieve greater equality in the distribution of income.
Consider whether Table 1.1 supports the conclusion that greater inequality of incomes is linked to poor literacy ratios of females to males and leads to greater poverty.
Use one example of a supply-side policy and one example of a fiscal policy to assess how a government might be able to achieve greater equality in the distribution of income.
Consider whether the actions of the French government on electricity prices might be thought to increase either equality or equity for consumers and producers.
The government of a country sets an effective national minimum wage for workers.
Discuss the arguments for and against the government’s decision.
Pareto optimality can only be achieved when an economy is both productively and allocatively efficient. This will create a more equitable society.
Discuss the extent to which you agree with this statement.