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Discuss each of the following statements from the standpoints of equity and efficiency
Discuss each of the following statements from the standpoints of equity and efficiency.
a. “Everyone in society should be guaranteed the best health care possible.”
b. “When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”
Explain whether each of the following government activities
Explain whether each of the following government activities is motivated by a concern about equity 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
Suppose the United States adopted central planning for its economy
Suppose the United States adopted central planning for its economy, and you became the chief planner. Among the millions of decisions that you need to make for next year are how many compact discs to produce, what artists to record, and who should receive the discs.
a. To make these decisions intelligently, what information would you need about the compact disc industry? What information would you need about each of the people in the United States?
b. How would your decisions about CDs affect some of your other decisions, such as how many CD players to make or cassette tapes to produce? How might some of your other decisions about the economy change your views about CDs?