Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following documentaries on the 2008 economic collapse, and tax havens. SF argues that the most talented, smartest, and most capable people will get the best

Following documentaries on the 2008 economic collapse, and tax havens. SF argues that the most talented, smartest, and most capable people will get the best jobs and be rewarded with the most wealth. By this logic, big bankers and executives at institutions like Goldman Sacks, are the smartest and most talented people on earth, and the banking system should work flawlessly.

Question:

  1. If that's that case, then why did the banks collapse?
  2. Considering the hundreds of millions of dollars top executives made after the collapse, why were they further rewarded with more wealth instead of ending up impoverished?
  3. What are your thoughts on SF as a theory for explaining inequality? *BY the way, SF is good at looking at many other things, just not inequality.




Step by Step Solution

There are 3 Steps involved in it

Step: 1

Youre rightSF Supply and Demand is a strong theory for understanding resource allocation in many mar... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometric Analysis

Authors: William H. Greene

5th Edition

130661899, 978-0130661890

More Books

Students also viewed these Economics questions

Question

What does surplus energy mean to civilizations?

Answered: 1 week ago