moderate push for economic equality can increase economic output, both through methods like improved

education and by building a base of political support for market forces.

Self-Check Questions

1. Describe how each of these changes is likely to affect poverty and inequality:

a.

b.

Incomes rise for low-income and high-income workers, but rise more for the high-income earners.

Incomes fall for low-income and high-income workers, but fall more for high-income earners.

2. Jonathon is a single father with one child. He can work as a server for $6 per hour for up to 1,500 hours per

year. He is eligible for welfare, and so if he does not earn any income, he will receive a total of $10,000 per

year. He can work and still receive government benefits, but for every $1 of income, his welfare stipend is

$1 less. Create a table similar to Table 15.4 that shows Jonathan’s options. Use four columns, the first
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