Chapter 20 Reflection

Write a 200 to 250 word summary of this chapter. Be sure to capture the main ideas.

The beginning of the chapters explains income inequality. The example used was splitting the population of the U.S. into five groups according to family income. This showed that the richest fifth earns more than tens times as much than the poorest fifth.

Later, the chapter describes the many views of politicians about the role of government in altering the distribution of income. Utilitarians choose the distribution of income to maximize the sum of utility of everyone in society. Liberals determine this as if we were behind a "veil of ignorance" that prevented us from knowing out stations in life. Libertarians want the government to enforce individual rights to ensure a fair process but then not be concerned about inequality in the resulting distribution of income.

Lastly, the chapter lists some policies that help the poor: Minimum wage laws, welfare (which provides supplemental income for nedy families), negative income tax (which collects revenue from high-income households and gives subsidies to low-income households), and in-kind transfers (some examples are food stamps, medicaid, and shelters).

Chapter 19 Reflection

Post three of your "margin notes" from your reading of the chapter to your blog. Why did you make the comment you made in the margin? What did you find confusing, useful, or important about the passage you commented on?

I don't make "margine notes"...

Chapter 18 Reflection

Write 3 short answer questions for an exam over this chapter that you believe cover the most important points in te chapter.

What is the value of the marginal product?

How are wages determined in competitive labor markets?

What are some examples of events that could shift the demand for labor?

Chapter 16 Reflection

Muse a little about the role of advertising in industries classified as monopolisitic competition or even oligopoly. Can advertising make markets either more of less cometitive? How?

Advertising makes markets more competitive, because a business can use them to differentiate themselves and bring more value to the name. Advertising puts their name out there, while other companies stay less known.

What was the most interesting thing you learned in this chapter? Why was it interesting to you?

It was a short chapter with mostly uninteresting information. I found it funny that Nike created a sneaker specifically for Native Americans and the book referred to Native Americans as American Indians...

Chapter 15 Reflection

How did your understanding of monopolies change after reading this chapter? What do you see differently now?

My understanding hasn't changed and I don't see it differently.

Trash removal is sometimes a government monopoly. Why do you think that is? Is your trash removed by a single hauler? If yes, who chose the company and why? If not, would you prefer a single choice? Why or why not?

I don't know why trash is a government monopoly. I don't know if my trash is removed by a single hauler, because I don't pay attention to who removes my trash. The city probably chose the company that removes it and I wouldn't change the company, because I don't care who takes my trash.

Chapter 14 Reflection

Why does a perfectly competitive firm maximize revenues where P=MC?

They choose do do this because if the price were any higher, competing firms will meet the demand. If any lower, the firm would lose money on each sale.

Why is P=MR in this market type?

It makes zero profit...???

Name a business you think belongs in this category. Why?

Don't really know what category the teacher means...

Chapter 13 Reflection

Why do marginal costs first fall and then begin to rise?

Marginal cost arises when from producing an additional unit of output.

Why are marginal costs important to a firm when making decisions to increase or decrease production?

It can be important to firms when deciding whether or not to hire employee. Businesses weigh the benefit of the added employee against the cost of paying them.

How can you apply these cost concepts to your own life?

It can be applied to me when I eat cake for dessert. The more I eat, the lower the marginal benefit because I'm not as hungry anymore. Continuing to eat the cake, the marginal cost increases because I'm not getting as much from it as I was earlier, because I'm not hungry anymore.