Consider two communities. In one community, 10 families have incomes of $100 each and 10 families have

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Consider two communities. In one community, 10 families have incomes of $100 each and 10 families have incomes of $20 each. In the other community, 10 families have incomes of

$200 each and 10 families have incomes of $22 each.

a In which community is the distribution of income more inequitable? In which community is the problem of poverty likely to be worse?

b Which distribution of income would Rawls prefer? Explain.

c Which distribution of income do you prefer? Explain.

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Principles Of Microeconomics [Australia And New Zealand Edition]

ISBN: 9781337408066

6th Edition

Authors: Joshua Gans, Stephen King, Martin Byford, N. Gregory Mankiw

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