EBK PRINCIPLES OF ECONOMICS
8th Edition
ISBN: 8220103600453
Author: Mankiw
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 20, Problem 7PA
Subpart (a):
To determine
The difference between the in-kind transfers and making it cash transfers.
Subpart (b):
To determine
The difference between the in-kind transfers and making it cash transfers.
Subpart (c):
To determine
The difference between the in-kind transfers and making it cash transfers.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Why is affordable health care not provided to the poorin the United States?
Can
There are three agents, a, b, and c. Person a receives $500 in income, b receives $400, and e gets
$100. How much income of the total income does the poorest 1/3 receive? How much does the
bottom 2/3 receive? Graph the Lorenz Curve. Calculate area B. Caleulate area A. What is the
gini coefficient? Use a graph like the one below to draw a picture of the Lorenz curve and help in
calculating areas A and B.
%income
100% = 1-
%population
100% - 1
Knowledge Booster
Similar questions
- "What should be the ideal Social Security Program for the United States ?"arrow_forwardMany economists believe that a more effective way to supplement the income of the poor is through a negative income tax. Under this scheme, everyone reports his or her income to the government; individuals and families earning a higher income will pay a tax based on that income, while low-income individuals and families receive a subsidy, or negative tax. Assume that the only qualification required to receive a tax credit is low income.arrow_forwardDo individuals have a right to free health care? Do they have a right to force others to provide them with free health care?arrow_forward
- What is the relation between Health and Inequality?arrow_forwardA group of 10 people have the following annual incomes: $24, 000, $18, 000, $50, 000, $100, 000, $12, 000, $36, 000, $80, 000, $10, 000, $24, 000, $16, 000. Calculate the share of total income that each quintile receives from this income distribution. What percent of the total income is represented by the highest quintile? Round your answer to the nearest tenth. Provide your answer below:arrow_forwardAlthough it is hard to separate the causes of poverty from the effects, there is no doubt that poverty is associated with various economic and social ills. Suppose that you were a policymaker in the government and your goal was to reduce the number of people living in poverty. How would you achieve this goal?arrow_forward
- Can public finance for health be deployed as a tool to redistribute income from rich to the poor? If yes how?arrow_forwardHow health care inequality increases costs for everyone?arrow_forwardWho does general health insurance cover in terms of persons? Who can be excluded? How is the obligation to pay universal health insurance premium regulated?arrow_forward
- a. Is the presence of an underground economy likely to result in a Gini coefficient that overstates or understates poverty? b. Consider a simple economy where 90 percent of citizens report an annual income of $10,000 while the remaining 10 percent report an annual income of $110,000. What is the Gini coefficient associated with this economy? c. Suppose the poorest 90 percent of citizens actually have an income of $15,000 because each receives $5,000 of unreported income from the underground economy. What is the Gini coefficient now?arrow_forwardWhy should we not use annual income when studying poverty?arrow_forwardNew York Times columnist David Brooks wrote about the implementation of the Affordable Care Act (ACA) and described a possible adverse selection cascade: “the young may decide en masse that it is completely irrational for them to get health insurance that subsidizes others.” a. Why might it be irrational for young and healthy people to buy health insurance? b. In what sense do young and healthy people who buy health insurance provide a subsidy to people who are older or who are ill? c. What do you think Brooks meant by an adverse selection cascade? How might the actions of young and healthy people contribute to adverse selection problems in the health insurance system?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher: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
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
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning