ECON 301 Lecture 7: ECON301 - Lecture 7 - Consumer Surplus

What happens to social welfare if we increase taxes on the rich? Remember that we measure social welfare in terms of total surplus. (Make sure that you understand the graphs involved with this analysis. only relevant graphs) 

10)

One basic argument about why capitalism gave rise to the welfare state is that:

Capitalist societies have complex institutional sets that lead to major roles for the state.

Wealth and the commercial impulse make people more peaceful toward one another.

The United States, the leading capitalist country, was where the welfare state originated.

Capitalism gave rise to the religious and community institutions that provide welfare.

11)

A perspective on the welfare state that emphasizes mobilization and political action might argue which of the following are important in shaping outcomes?

(5pts)

Citizens who benefit from the welfare state are more likely to vote and secure their interests.

Welfare states have made mobilization and political action more feasible for all.

Welfare states may be a compromise among political interests, such as business and labor.

Negotiations among bureaucrats determine which welfare recipients deserve which benefits.

12)

National defense, basic infrastructure, and a healthy environment are examples of _________.

Welfare state services

Market institutions

Public goods

Democratic tools

13)

The term “invisible hand” is likely to be found about:

Neoliberalism

Statism

Marxism

Privatization

Referencing this week’s readings and lecture, discuss the primary phases of systems analysis and the major challenges that a system analyst must overcome for each of the primary phases of system analysis.