Unformatted text preview: hard and productively. People have to earn things in society, no one has a right to any particular good. This leads to success in the marketplace, because people have to work in order to earn the purchasing power of goods. The marketplace encourages people to work for these goods. c)(1 point) Does your answer to part b mean that we, as a nation, are insincere in our commitment to democracy and equality? How does Arthur Okun resolve this seeming contradiction?- (2 points) Does inequality actually reduce welfare? Evaluate Alejandro Reuss’s article “Cause of Death” ( Real World Micro, ch. 7.4). What is the effect of our market system and inequality on life expectancy? What effect do you imagine poor health has on economic efficiency? How might competitive consumption lower happiness?...
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- Spring '08
- Economics, Samantha Sterba, Econ Problem Set