Overview

Complete the following Unit 4 Written Homework Assignment for this module by the stated due date on the Schedule. Please submit in theUnit 4 Written Homework Assignment Dropboxas a .doc, .docx, .pdf or .rtf file.

Instructions

Complete the following questions in the form of short essays. Each question is worth 10 points. Be sure to cite your references.Type all responses following each question on this assignment page and submit to the Dropbox.

1. How rich are the rich? Wealth statistics on the very rich are compiled every year by Forbes magazine.

Answer the following questions:

A. Carefully define wealth, differentiating it from income. Which of these two are more unequally distributed in the US? Why?

B. Find out who are the richest in the US and world at www.forbes.com:

1. Choose lists, then "400 Richest Americans."
2. Select ten individuals for study at random.
3. List and explain your 10 individuals and explain how much wealth they each own. (Make certain that your units are correct.) How did they achieve this wealth?

C. Based on your sample, explain what percentage of individuals gained this wealth through inheritance and what percentage through entrepreneurship.

1. For this question, you will be internet searching for some information on the labor market.

Begin by searching for information on current trends in the US Labor Markets and answer the following 2 questions:

1. Has overall employment been rising or falling during the past 3 years?What factors might account for this pattern?
2. Have US workers' wages been rising or falling during the past 3 years?

Now you will be searching for some information on the minimum wage.Using the website, www.dol.govor any other sites you wish to use, determine information about the minimum wage. Answer the following questions:

1. What is the current federal minimum wage in the U.S?
2. What is the federal minimum wage for workers who receive tips in the US?
3. What is the current minimum wage for the state that you live in?
4. Why was the minimum wage law first enacted?
5. What are the arguments for and against raising the minimum wage?

3. Examine the following marginal costs and marginal benefits associated with air cleanliness for a firm:

Quantity of Clean Air (%)

Marginal Cost ($)

Marginal Benefit ($)

0

50,000

600,000

20

150,000

360,000

40

200,000

200,000

60

300,000

150,000

80

400,000

120,000

100

Infinite

0

A. What is the optimal degree of air cleanliness?

B. What would then be the optimal degree of air pollution?

C. Suppose that a state provides subsidies for companies to build plants that contribute to air pollution.Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness.What is the optimal degree of air cleanliness after this change?

D. Why would we not just want the quantity of pollution to be zero?

You will now be discussing labor unions and strikes.

1. Begin by describing the goals that unions may pursue in a paragraph or two.

1. Next, consider recent work stoppages and strikes by looking at the U.S. Bureau of Labor Statistics information at www.bls.gov.Under Subjects, go to the heading of Pay and Benefits and then select Strikes and Lockouts.

1. Using the Work Stoppage information or data in the Strike Report, find a case of a strike that has occurred in the last 5 years that you have an interest in investigating.Research information on the BLS and write a summary about the strike.In your summary, discuss the establishment and union involved in the work stoppage, the number of workers involved and the number of days of idleness.Additionally do some internet searching on that particular strike you have chosen and determine more information on the purpose of the strike and any results or negotiations that ensued and explain that in your summary as well.Be sure and cite your references for your information found.

1. Using the historical tables from the Budget of the US government, utilize the following website to determine where the US government allocates its expenditures.

The website is https://www.whitehouse.gov/omb/historical-tables/

1. Examine Table 3.1 on Outlays by Superfunction and Function.
2. Explain what government functions have been capturing growing shares and what functions have been capturing declining shares of government spending in recent years.
3. Select one of the government functions and describe whether it has seen an increase or decrease in government spending over the past 10 to 15 years.For the function you have selected, is it related to the problem of addressing externalities, providing public goods or dealing with other market failures.Does it appear to be related to political functions instead of economic functions?

1. Read the following article, UPS is turning Trash into Gas to Clean up its Emissions at this website:

https://www.cnn.com/2019/05/22/business/ups-renewable-natural-gas/index.html

Answer the following questions:

1. Explain how pollution represents market failure.
2. Why is UPS buying renewable natural gas?
3. Why is renewable natural gas better for the environment?
4. What is expected to be the future of this industry?

Make sure you use correct spelling, grammar, etc. Please see the Course Schedule and Course Rubrics pages in the Syllabus Module for due dates and grading information.