Discuss each of the following statements from the standpoints of equality and efficiency.

a. "Everyone in society should be guaranteed the best healthcare possible."

b. "When workers are laid off, they should be able to collect unemployment benefits until they find a new job."

A 1996 bill reforming the federal government’s antipoverty programs limited many welfare recipients to only two years of benefits. a. How does this change affect the incentives for working? b. How might this change represent a trade-off between equality and efficiency?

You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain.

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to$3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development?

Discuss each of the following statements from the standpoints of equality and efficiency.

"When workers are laid off, they should be able to collect unemployment benefits until they find a new job. "

Describe some of the tradeoffs faced by the following:

a family deciding whether to buy a new car

Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency discuss the type of market failure involved. a. regulating cable TV prices b. providing some poor people with vouchers that can be used to buy food c. prohibiting smoking in public places d. breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies e. imposing higher personal income tax rates on people with higher incomes f. instituting laws against driving while intoxicated

You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending the$100 now?

Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, how might this lead to faster growth in productivity? Who do you suppose benefits from the higher productivity? Is society getting a free lunch?

Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.

a. regulating cable TV prices

b. providing some poor people with vouchers that can be used to buy food

c. prohibiting smoking in public places

d. breaking up Standard Oil (which once owned $90$ percent of all oil refineries) into several smaller companies

e. imposing higher personal income tax rates on people with higher incomes

f. instituting laws against driving while intoxicated

Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved. regulating cable TV prices

A $1996$ bill reforming the federal government's antipoverty programs limited many welfare recipients to only two years of benefits.

How might this change represent a trade-off between equality and efficiency?

A $1996$ bill reforming the federal government's antipoverty programs limited many welfare recipients to only $2$ years of benefits.

How does this change affect the incentives for working?

"A recent bill reforming the government’s antipoverty programs limited many welfare recipients to only two years of benefits.

How does this change affect the incentives for working?"