1- Should a nation’s income be distributed to its members according to their con
ID: 1120251 • Letter: 1
Question
1- Should a nation’s income be distributed to its members according to their contributions to the production of that total income or according to the members’ needs? Should society attempt to equalize income or economic opportunities? Are the issues of equity and equality in the distribution of income synonymous? To what degree, if any, is income inequality equitable?
2- Briefly discuss the demand and supply factors that contribute to rising health costs. Specify how (a) asymmetric information, (b) fee-for-service payments, (c) defensive medicine, and (d) medical ethics might cause health care costs to rise.
3- Why is the PPACA’s attempt to extend insurance coverage to all Americans so costly? How does the PPACA attempt to obtain the funds needed to extend insurance coverage to all Americans?
Explanation / Answer
1. Income districution is one of the major issues at economicfront that demands being addressed evry now and then and everywhere.
Generally in a capitalist society or free flow market evrey worker gets the share of the income equal to his share of contribution to the total income. That is factory workers get wages depending upon their share of labor and CEO of firms get share dependiing upon the labor they put in.
But such system has serious drawbacks. Factory workers who get formean jobs get suchjob because ofhis skills and education level whic he acquired depending upon the opportunities he get. The Ceo of the sam efirm get much better opportunities to get much more educated and get more skilled and hence get the job. Thus the share gets distributed according to the share of contribution without giving any importance to opportunity shares each get. Hence a socialist society or mixed society tends to reduce income inequality and tends to handle the issue of income distribution by not distributing incomeaccording to contributions but according to their needs and thats why we have social security acts, bills and orders.
Equalizing income implies euqal distribution of income taht is everyone having equal share of the total income. This seems not good because some may have more requirements than others and also some may have more capabilities than other shence deserving more etc. But equalizing econmic opportunities implies providing everyone equal chance to get goods hare of income. That is if society provides free education to povert ridden to institutions where rich families children also coming so it is providing equal opportunty to both of the class to get nutured. AFter equalizing econmic opportunties such as free education to poor, equal employment opportunties etc. when people get some share of inceom that is of tru eowrth to their capabilities. Thus qualizing econmic opportunties is better than equalizing income.
Equity distribution is same as equalizing income to all and equitable is provding according to requirement.
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