Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 19.6, Problem 2ST
To determine
Effects of money transfer of special interest legislation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Select all of the following that accurately describe creditor and debtor rights:
Group of answer choices
One example of a creditor right is the right to repossess collateralized assets.
Increasing creditor rights will tend to increase interest rates, but the effect on quantity is unknown.
One example of a debtor right is the right to garnish wages.
Increasing debtor rights will tend to increase interest rates, but the effect on quantity is unknown.
“It will be difficult to solve South Africa’s extreme inequality problem without more direct wealth redistribution efforts, according to French economist Thomas Piketty.
Piketty, who was the keynote speaker at a webinar celebrating 100 years of economics at the University of the Witwatersrand, was responding to debates around the creation of a basic income grant in South Africa.”
Source: https://mg.co.za/business/2022-09-06-direct-wealth-distribution-needed-to-fix-sas-extreme-inequality-says-piketty/
Which of the following statement is correct?
a. Thomas Piketty believes that a basic income grant is necessary to reduce income inequality
b. if instituted, the basic income grant would increase income inequality
c. if instituted, the basic income grant would have NO effect on income inequality
d. Income inequality is caused by government wealth redistribution
When welfare payments like housing credits are completely cut off when the recipient's income goes above a certain threshold, then this could discourage the recipient from finding more work or a better-paying job. True or False True False
Knowledge Booster
Similar questions
- Keep in mind that you don’t have to die to have to pay inheritance and gift taxes under the current tax code. Anyone who gives a family member more than $11.5 million (as of 2020 indexed annually for inflation) is subject to the tax. Is that amount too high or too low, and why?arrow_forwardScientists studying the economics of a country, community, or group of people are often interested in the distribution of wealth, where wealth is understood to mean the income or the personal assets of individual households. A powerful tool for illustrating how wealth is distributed across a society is the Lorenz curve (invented by the American economist Max Otto Lorenz in 1905). A typical Lorenz curve is given by y = L(x), where 0 < x < 1 and 0 < y < 1. The variable I represents the fraction of all households in the society and y = L(x) represents the fraction of the total wealth that is owned by the fraction x of the society. For example, for the Lorenz curve shown in Figure 1, we see that L(0.5) = 0.2, which means that 0.5 (50%) of the society owns 0.2 (20%) of the wealth. bottom botom y A 1- Line of perfect equality 0.8 of households control 0.6 of the wealth. Lorenz curve 0.5 of households control 0.2 of the wealth. 0.2 B 0.5 0.8 a1 1 Fraction of Households Figure I Fraction of…arrow_forwardAssume that the current disability benefit for individuals with disabilities that prevent them from working full time, is X kroner per day. The disability benefit goes to zero if a worker accepts a job for even one hour per week. Suppose that the benefit rules are changed so those disabled workers who take jobs that pay less than X kroner per day receive a benefit that brings their total daily income (wage plus the benefit) up to X kroner. When labor market earnings of a disabled individual rises above X kroner per day, their disability benefits end. Draw the old and the new budget constraints (label each clearly) associated with the disability benefit program, and analyze the work incentive effects of the change in benefitsarrow_forward
- Queues or waiting lists treat rich and poor equally, promoting equity. True Falsearrow_forwardWhich of the following provides the best explanation for how consumer credit can exacerbate inequality? People with lower wealth and incomes must sacrifice more capacity and capital in order to acquire credit. People with lower wealth and incomes purchase less, so since credit allows all people to make purchases sooner, credit provides less benefit to these people. People with lower wealth and incomes may have less access to credit and pay higher interest rates when they are approved. People with lower wealth and incomes are offered credit with less collateral.arrow_forwardSuppose you borrow $1,000 from a bank at a fixed rate of interest (5%) for one year to finance your college education. Explain the redistribution of income that occurs if the rate of inflation that year is 7%. Was this loan advantageous to you or the bank?arrow_forward
- "Analyze the economic effects of a significant increase in the minimum wage within a small economy. Discuss how this change might impact employment rates, local business profitability, consumer spending, and the cost of living. Additionally, consider the potential long-term outcomes for economic growth and income inequality in this region."arrow_forwardexplanation of the important influencing factors that will provide better self-employment of youth involvement in the overall economy.arrow_forwardExplain the difference between income and wealth, and why both are important in terms of economic security for older adults.arrow_forward
- Question 1: Minnesota Governor Tim Walz has hired you to teach him and his staff about Temporary Assistance for Needy Families (TANF). Describe how TANF works and show, using appropriate graphs(s), how TANF would affect families. Discuss how the requirements would affect families' poverty and work. Discuss what the tradeoffs are in using this policy to reduce poverty.arrow_forwardPresently, there is a minimum and maximum social security benefit paid to retirees. Between these two bounds, a retiree’s benefit level depends on how much she contributed to the system over her work life. Suppose Social Security was changed so that everyone aged 65 or older was paid $12,000 per year regardless of how much she earned over her working life or whether she continued to work after the age of 65. How would this likely affect hours worked of retirees?arrow_forwardif any formulas are used please show themarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning