Extreme efficiency comes at a cost of terrible inequality, while perfect equality comes at a cost of terrible inefficiency. However, there are cases where there is no efficiency cost to increased equality. Identify each scenario that is likely to increase equality with little or no efficiency cost. Using money and influence, rich donors successfully lobby for tax cuts for the highest 1% of earners. An extension of unemployment benefits leads to prospective workers taking more time off between jobs. After-school programs in Chicago reduce crime rates among teenagers. Atlanta's investment in public transportation leads to higher worker productivity, as fewer employees miss days or show up late for work.
Extreme efficiency comes at a cost of terrible inequality, while perfect equality comes at a cost of terrible inefficiency. However, there are cases where there is no efficiency cost to increased equality. Identify each scenario that is likely to increase equality with little or no efficiency cost. Using money and influence, rich donors successfully lobby for tax cuts for the highest 1% of earners. An extension of unemployment benefits leads to prospective workers taking more time off between jobs. After-school programs in Chicago reduce crime rates among teenagers. Atlanta's investment in public transportation leads to higher worker productivity, as fewer employees miss days or show up late for work.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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