Suppose one family has annual income of $100,000 whereas another has only $20,000. Is this outcome fair?
Question:
Suppose one family has annual income of $100,000 whereas another has only $20,000. Is this outcome fair? What is your initial reaction? Compare and contrast your views depending on the following:
a. The family with the higher income has two persons working full-time, while the lower-income family derives its income from Social Security.
b. The family with the higher income is headed by a person who completed a college degree, whereas the other family is headed by someone who dropped out of high school.
c. The family with the higher income derived most of its income from the farm subsidy program.
d. The family with the higher income received it as an inheritance from parents who just died.
Step by Step Answer:
Microeconomics Private And Public Choice
ISBN: 9781305506893
16th Edition
Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson