Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson

Exercise 9

Suppose one family has $100,000 whereas another has only $20,000. Is this outcome fair? What is your initial reaction? Compare and contrast your views depending on the following:
a. The family with the higher income has both a husband and wife working, whereas the other family has chosen for the wife to remain home with the children rather than work in the labor force.
b. The family with the higher income is headed by a person who completed a college degree, whereas the other family is headed by someone who dropped out of high school.
c. The family with the higher income derived most of its income from the farm subsidy program.
d. The family with the higher income received it as an inheritance from parents who just died.
*Asterisk denotes questions for which answers are given in Appendix B.