Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:outcomes
opportunity
eserved or earned
Answer Bank
Leave his money to the child whom he thinks deserves more money
Leave his money to charity instead
Leave Terry his entire wealth to offset the gap between him and his sister
Tell his kids he will leave the money to whoever does the most to take care of him in his old age
Split his wealth evenly between Terry and Tonya
Transcribed Image Text:Inequality, Social Insurance, and Redistribution
End of Chapter Problem
Imagine that David is preparing his will and is trying to decide how to divide his assets between his two grown children.
His daughter, Tonya, is a chemical engineer who earns a high income. His son, Terry, opted out of college and went to work
straight out of high school. Now Terry works in construction; he works just as hard as Tanya, but he is less affluent than she
is.
Classify each example of possible ways David could divide his assets based on fairness and distribution as illustrated in the
chapter.
Fairness of equal
Fairness of equal
Fairness of process
Fairness of what is
outcomes
opportunity
eserved or earned
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