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Economics Homework 11 | StudyDaddy.com

Each answer should consist of one or two paragraphs that contain analysis (not opinion).

1. Describe the impact of rent controls on the rental housing market.  Explain that while designed to help poor tenants, rent control alters landlord incentives in such ways so as to disadvantage poor tenants.

2.  Evaluate this statement: “Income inequality is unlikely to rise when there is income mobility over time.”  Evaluate this statement.  Is it true? Why or why not?

3.  If you were told that women were paid 79% of what men earn is that all you need to know or are there important factors that explain some or all of this difference?  If the answer is that discrimination against women employees must be prevalent in the market, why is it that women entrepreneurs make 50% of what male entrepreneurs make?  Is this sex discrimination or something else?

4.  Why do you think organized labor groups, such as unions, are supporters of a higher minimum wage (treat them as bootleggers), even though all their members earn much more than the minimum wage?  Hint, workers compete with other workers.

5.  Evaluate this statement: “It is not possible to cut tax rates and, as a result, collect more revenue.”

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