Anti Poverty Program Essay
Chapter 1:
8. A recent bill reforming the government’s anti- poverty programs limited many welfare recipients to only two years of benefits. A. How does this change affect the incentives for working?
Answer: Well, simply put, if the bill is enforced and a person becomes ineligible for welfare - not working won't be an option. But I have my doubts that America's social service or welfare programs will ever be truly efficient. There are just too much red tape, administration, fraud and loop holes. B. How might this change represent a trade-off between equality and efficiency?
Answer: Governments are often faced with trade-offs between equity and efficiency goals of tax policy. There is an abundance of examples of conflicts between equity and efficiency inherent in the taxation of income generating activity. Specifically, the choice of progressive tax rate …show more content…
“If a certain trade is good for one person, it cant be good for the other one.”
Answer: False, it is not true that if a trade is good for one person, it cannot be good for the other one. Trades can and do benefit both sides especially trades based on comparative advantage. If both sides did not benefit, trades would never occur. D. “If a certain trade is good for one person, it is always good for the other one.”
Answer: True, Trades can and do benefit both sidesespecially trades based on comparative advantage. If both sides did not benefit, trades would never occur.
E. “If trade is good for a country, it must be good for everyone in the country.”
Answer: False, trade that makes the country better off can harm certain individuals in the country. For example, suppose a country has a comparative advantage in producing wheat and a comparative disadvantage in producing cars. Exporting wheat and importing cars will benefit the nation as a whole, as it will be able to consume more of all goods. However, the introduction of trade will likely be harmful to domestic auto workers and
8. A recent bill reforming the government’s anti- poverty programs limited many welfare recipients to only two years of benefits. A. How does this change affect the incentives for working?
Answer: Well, simply put, if the bill is enforced and a person becomes ineligible for welfare - not working won't be an option. But I have my doubts that America's social service or welfare programs will ever be truly efficient. There are just too much red tape, administration, fraud and loop holes. B. How might this change represent a trade-off between equality and efficiency?
Answer: Governments are often faced with trade-offs between equity and efficiency goals of tax policy. There is an abundance of examples of conflicts between equity and efficiency inherent in the taxation of income generating activity. Specifically, the choice of progressive tax rate …show more content…
“If a certain trade is good for one person, it cant be good for the other one.”
Answer: False, it is not true that if a trade is good for one person, it cannot be good for the other one. Trades can and do benefit both sides especially trades based on comparative advantage. If both sides did not benefit, trades would never occur. D. “If a certain trade is good for one person, it is always good for the other one.”
Answer: True, Trades can and do benefit both sidesespecially trades based on comparative advantage. If both sides did not benefit, trades would never occur.
E. “If trade is good for a country, it must be good for everyone in the country.”
Answer: False, trade that makes the country better off can harm certain individuals in the country. For example, suppose a country has a comparative advantage in producing wheat and a comparative disadvantage in producing cars. Exporting wheat and importing cars will benefit the nation as a whole, as it will be able to consume more of all goods. However, the introduction of trade will likely be harmful to domestic auto workers and