Answer to Question #310012 in Microeconomics for khubaib

Question

discuss each of the following statements from the standpoints of equity and efficiency.

a). everyone in society should be guaranteed the best health care possible.

b). when workers are laid off they should be able to collect unemployment benefits until they find a new job.

Answer 1

a) Health care is a fundamental human right, and everyone has a fair opportunity to be

healthy and access health care; hence health care equity is attained. Everyone in society

needs to receive efficient treatment from all the health facilities.

b) Since no one plans to be laid off, it is fair and just for them to receive unemployment

benefits as a form of insurance. However, the trade-off between equity and efficiency

argues that the more generous the unemployment benefits are, they encourage the person

to remain unemployed as more significant equity reduces efficiency.