Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 1

The income measures discussed in this chapter do not include noncash benefits that are often available to low-income individuals, such as food stamps and Medicaid. Do you think such noncash benefits are more likely to be made available to poor people in a rich nation or in a poor nation? Explain your answer. Then ask yourself, how will the difference in noncash benefits in rich nations versus poor nations affect your conclusions regarding relative incomes of poor individuals in capitalist nations compared to noncapitalist nations? Explain this answer as well.