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Mankiw Ca

a. From an equity standpoint, everyone deserves access to healthcare, but providing the best possible care to all would be difficult and inefficient due to scarce resources. This could sacrifice quality if resources are not allocated efficiently. b. In terms of equity, unemployed workers deserve support, but unemployment benefits without incentive to find work is not efficient and could become a lifestyle for some. This wastes potential economic output. c. The author's grandparents had less access to education and healthcare due to lack of facilities in the past. These standards of living have increased due to overall economic growth and higher GDP increasing development of schools and hospitals.

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88 views1 page

Mankiw Ca

a. From an equity standpoint, everyone deserves access to healthcare, but providing the best possible care to all would be difficult and inefficient due to scarce resources. This could sacrifice quality if resources are not allocated efficiently. b. In terms of equity, unemployed workers deserve support, but unemployment benefits without incentive to find work is not efficient and could become a lifestyle for some. This wastes potential economic output. c. The author's grandparents had less access to education and healthcare due to lack of facilities in the past. These standards of living have increased due to overall economic growth and higher GDP increasing development of schools and hospitals.

Uploaded by

Karo Moti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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8. Discuss each of the following statements from the standpoints of equality and efficiency.

To start with Equity in economics is defined as the process to be fair in an economy that can
range from the concept of taxation to welfare in the economy. It also means how the income and
opportunity among people are evenly distributed. While, Economic efficiency is when every
scarce resource in an economy is used and distributed among producers and consumers in a way
that produces the most economic output and benefit to consumers.

a.“Everyone in society should be guaranteed the best healthcare possible.”

In economics, there is actually a big trade-off between efficiency and equity. It seems that it is
difficult to have both in equal balances, even though this would be the goal in an ideal
world. When we see it from the stand point of Equity, everyone deserves the best health care but
due to the scarce resources, providing best health care for all becomes difficult. But if we want to
allocate it equally we are sacrificing efficiency since it will become difficult to keep its quality.

b. “When workers are laid off, they should be able to collect unemployment benefits until they
find a new job.”

In terms of equity unemployed people should receive some help because they still have things to
spend to maintain their family. But in terms of efficiency we could say that this way to address
the problem is not efficient because we are allocating resources where there could be another
solution. We also know that sometimes there is no incentive to find a job since they get
unemployment benefits from the government. For example in Canada some people made their
lifestyle working for two years and then spending one year by receiving unemployment
benefits. This sacrifice the potential since they don’t do anything in the economic view .

9. In what ways is your standard of living different from that of your parents or grandparents
when they were your age? Why have these changes occurred?

This question can be answered in many perspectives. In my case, the standard of living of my
grandparents and my parents at my age is quite different from me in different ways. For example
my grandparents have not got the chance to learn due to the lack of educational facilities and
schools but now this problem has been solved in progress. In terms of health care they were only
few health care centers in the past due to the low economic level. But now there are a lot of
private and governmental hospitals working on this. This standard of living changes occurred
due to the increase in the production level or GDP of the country in general.

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