Answer to Question #310329 in Microeconomics for Ahmed

Question

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

“Everyone in society should be guaranteed the best health care possible.”

“When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”

Answer 1

1.) “Everyone in society should be guaranteed the best health care possible.”

If the government guarantees best health care to all people in the society, then it would have provided equity and these best health care services will ensure all have access to good facilities and services which in turn will increase efficiency and specifically productivity.

2.) “When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”

Collecting unemployment benefits will ensure equity in the society and it is costly to pay all the unemployed. Paying the unemployed reduces crime rates and in turn increases efficiency.