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

Exercise 1

Many government "safety net" programs (such as food stamps and unemployment insurance) are intended in part to soften the blow caused by adverse circumstances beyond the power of the individual (such as economic downturns). How do such programs also affect people's incentives to work hard to improve their economic out-comes? Taking into account all aspects of these programs,how are they likely to affect the degree of economic mobility?