1. What is the US view of poverty and what policies do US policymakers pursue to minimize the effects of policy? - Some policies are that there are different programs to help, such as job training, food stamps (SNAP), monetary help (TANF), medical help and the Women, Infant and Children's program (WIC).
2. Define equality. - People with the same circumstances are treated equally.
3. Define equity. How do equality and equity differ and why? - Equity is the concept of fairness in the labor market/economy. It relates to the distribution of wealth. The difference is with equity, the individuals situation is coming into play but is still in the realm of being treated like everyone else.
4. Define efficiency. How does equality and efficiency differ and why? - Efficiency is condition in which all mutually beneficial transactions have been concluded.
5. What is a more accurate measure of well-being? - Work-life balance is a more accurate measure of well-being, basic neccessities to support life: such as food, water and housing.
6. Can inequality be positive for society and/or the economy? Provide a real world answer to support your answer. - Inequality can be a positive thing for both. Yes, those not being treated equally can potentially gain something from it. An example is working a 40-hour week and then working a few more hours resulting in over-time pay.
7. What are the costs of inequality? Provide a real world answer to support your answer. - A few of the costs of inequality, according to chapter two in our text, are resentment, excessive crime, too much allocation of scarce resources and skew the disbursment of political power. An example is that rich people can afford big shot lawyers and might get a different type of "justice" whereas a poor person, which, then, would be in violation of the Founding Fathers notion of equality.
8. What are the benefits of inequality? Provide a real world answer to support your answer. - The benefits of inequality are powerful motivation: working, studying or investing; material incentives is another. An example would be the story of The Little Red Hen. No one helped her grow the wheat, grind the flour, knead the dough and bake the pie. It was only right she enjoyed it by herself.
9. Compare and contrast equity and efficiency. Provide a real world answer to support your answer. - Efficiency is, basically, doing the hard work, proving yourself and your abilities and then it paying off. Equity is having things being equal between both parties, men and women. Society benefits from economic growth by material incentives but incentive-based distributions can create resentment and social tension accoriding to chapter two in the text. An example for efficiency could be getting paid more for being more productive. An example for equity is using taxation to make sure everyone is equally paid.