Economics Chapter 20 Equality Opportunities More Important

subject Type Homework Help
subject Pages 9
subject Words 2812
subject Authors N. Gregory Mankiw

Unlock document.

This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
page-pf1
39. Raising the welfare of the worst-off person in society is an important goal of which political philosophy?
a.
utilitarianism
b.
liberalism
c.
libertarianism
d.
secularism
40. “The government should choose policies deemed to be just, as evaluated by an impartial observer behind a ‘veil of
ignorance.’” This statement is most closely associated with which political philosophy?
a.
liberalism
b.
utilitarianism
c.
libertarianism
d.
welfarism
41. Suppose that Jamal is moving to a state where personal incomes are distributed randomly. If Jamal believes in
liberalism, he would prefer
a.
an income distribution that is relatively equal.
b.
that everyone has the same work opportunities and market-determined wage rates.
c.
that private property be transformed to government property to safeguard people’s incomes.
d.
less economic assistance to the poor because it distorts the price system.
page-pf2
42. The philosopher John Rawls argued that
a.
b.
c.
d.
43. Liberalism is founded on a premise that behind a "veil of ignorance,"
a.
justice cannot be agreed upon.
b.
everyone’s income should be equal.
c.
everyone would agree to "just" rules to reallocate income.
d.
society should maximize the sum of individual utilities.
44. According to the doctrine of liberalism, principles of justice are the result of
a.
fair agreement and bargain.
b.
command-and-control policies.
c.
domination of the powerful by the weak.
d.
workers owning the factors of production.
page-pf3
45. The political philosophy that views the redistribution of income as a form of social insurance is
a.
utilitarianism
b.
liberalism
c.
libertarianism
d.
welfarism
46. The maximin criterion suggests that social policy should
a.
expropriate the factors of production from the capitalist class.
b.
ensure an equal distribution of income.
c.
elevate the well-being of those at the bottom of the income distribution.
d.
elevate the well-being of all workers.
47. The rule for redistribution proposed by John Rawls in his book A Theory of Justice is called the
a.
"optimal ignorance" rule.
b.
libertarian justice rule.
c.
maximin criterion.
d.
egalitarian criterion.
48. According to the maximin criterion, income should be transferred from the rich to the poor as long as it
a.
raises the well-being of the least fortunate.
b.
does not alter incentives to work and save.
page-pf4
c.
promotes an equal distribution of income.
d.
does not lower the welfare of the elderly.
49. If society chose to maximize total utility rather than minimum utility,
a.
society would achieve perfect income equality.
b.
society would achieve the maximin objective.
c.
its justice would be more utilitarian than Rawlsian.
d.
its justice would be more Rawlsian than utilitarian.
50. Would the maximin criterion achieve perfect income equality?
a.
b.
c.
d.
51. The goal of liberalism is to
a.
redistribute income based on the assumption of diminishing marginal utility.
b.
redistribute income in order to improve the well-being of the worst-off person in society.
c.
punish crimes and enforce voluntary agreements but not to redistribute income.
d.
measure happiness and satisfaction.
page-pf5
52. Liberals believe
a.
b.
c.
d.
53. Libertarians believe that
a.
b.
c.
d.
54. Which group would be the least upset by wide variation in the income distribution?
a.
utilitarians
b.
liberals
c.
libertarians
d.
Each group would be equally upset.
page-pf6
55. "Only individual members of society earn income, not society itself." This statement is most closely associated with
the political philosophy of a
a.
utilitarian.
b.
liberal.
c.
libertarian.
d.
None of the above is correct.
56. “The government should punish crimes and enforce voluntary agreements but not redistribute income.” This statement
is most closely associated with which political philosophy?
a.
liberalism
b.
utilitarianism
c.
libertarianism
d.
welfarism
57. “Equality of opportunities is more important than equality of incomes.” This statement would be most likely attributed
to which political philosophy?
a.
utilitarianism
b.
liberalism
c.
libertarianism
d.
welfarism
page-pf7
58. Robert Nozick criticizes Rawls's concept of justice by using an example of
a.
minimum wage laws.
b.
the grade distribution in a class.
c.
a leaky bucket.
d.
the price of tea in China.
59. Which political philosophy focuses on the process of determining the distribution of income rather than on the
outcome?
a.
utilitarianism
b.
liberalism
c.
libertarianism
d.
welfarism
60. Libertarians believe that in considering economic fairness, one should primarily consider the
a.
outcome of the system.
b.
process by which outcomes arise.
c.
maximin criterion.
d.
maximization total social utility.
page-pf8
61. Libertarianism identifies a redistribution of income role for government when
a.
the utility of the worst-off could be improved.
b.
the income distribution is altered by illegal means (e.g. theft).
c.
the total utility for society can be improved through redistribution of income.
d.
a “veil of ignorance” would result in a recommendation of redistribution of income.
62. In general, which of the following would libertarians argue is more important than equal outcomes?
a.
equal opportunities
b.
equal incomes
c.
providing a social safety net
d.
offering the opportunity to purchase social insurance
63. Marco earns more than Antonio. A legislator proposes taxing Marco to supplement Antonio's income. A libertarian
would view this proposal as
a.
a way to improve the welfare of all in society.
b.
a way to enhance Antonio's income in a socially responsible way.
c.
validation of the role of diminishing marginal utility over the maximin criterion.
d.
an inappropriate role for government, since government should not redistribute income.
page-pf9
64. The goal of libertarianism is to
a.
redistribute income based on the assumption of diminishing marginal utility.
b.
redistribute income in order to maximize the well-being of the worst-off person in society.
c.
punish crimes and enforce voluntary agreements but not to redistribute income.
d.
measure happiness and satisfaction.
65. Caroline earns more than John. Under a new tax system, some of the taxes paid by Caroline would go to John. A
libertarian would
a.
b.
c.
d.
66. Libertarians believe that
a.
the government should choose just policies as evaluated by an impartial observer behind a “veil of ignorance.”
b.
the government should aim to maximize the well-being of the worst-off person in society.
c.
everyone in society should have equal utility.
d.
the government should not redistribute income.
Scenario 20-1
The government is proposing switching from a progressive tax system in which families pay 15% of the first $50,000
earned, 25% of the next $50,000 earned, and 35% of any income over $100,000 to a tax system in which every family
pays 20% of their income less $20,000.
page-pfa
67. Refer to Scenario 20-1. Which group would be most in favor of the switch from the current progressive tax policy to
the new policy?
a.
Utilitarians, because they want to maximize the utility to the worst-off person in society
b.
Liberals, because of the maximin criterion
c.
Libertarians, because they believe in diminishing marginal utility
d.
All three groups would be equally in favor of the switch.
68. Refer to Scenario 20-1. What would the libertarians think of the proposed policy change?
a.
b.
c.
d.
Scenario 20-2
The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000
earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays
1/4 of its income regardless of how much they earn and all income redistribution is eliminated. That is, the tax revenue
generated is used only for infrastructure, public administration, and national defense.
69. Refer to Scenario 20-2. Which group would be most in favor of the proposed change in tax policy?
a.
Liberals, because they believe in the maximin criterion.
b.
Libertarians, because they do not believe in redistributing income.
c.
Utilitarians, because they believe in diminishing marginal utility.
d.
None of the above would be in favor of the proposed change.
page-pfb
70. Refer to Scenario 20-2. Which philosopher would be most in favor of the proposed change in tax policy?
a.
Jeremy Bentham
b.
John Stuart Mill
c.
John Rawls
d.
Robert Nozick
71. Which of the following pholitical philosophies would support redistribution of income that makes society fully
egalitarian?
a.
Liberals, because they believe in the maximin criterion.
b.
Libertarians, because they believe in evaluating the process by which economic outcomes arise.
c.
Utilitarians, because they believe in diminishing marginal utility.
d.
None of the above would support completely egalitarian redistribution of income.

Trusted by Thousands of
Students

Here are what students say about us.

Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.