Instead of Paying to Support Welfare Recipients, Many People Want

question 84

Essay

Instead of paying to support welfare recipients, many people want them to find jobs. If necessary, they want each province to create public service jobs for those who cannot find jobs in private industry. In a survey of 800 voters, 400 Conservatives and 400 Liberals, 75% of the Conservatives and 90% of the Liberals favoured the creation of public service jobs. Use a large-sample estimation procedure to compare the difference between the proportions of Conservatives and Liberals who favour creating public service jobs in the population of registered voters. Explain your conclusions.

Understand the concept of discouraged workers and their impact on the labor market.

Learn the phases of business cycles and their characteristics.

Distinguish between endogenous and exogenous theories of business cycles.

Analyze the accuracy of unemployment statistics and factors affecting these measurements.

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Definitions:

Coase Theorem

A principle in economics that suggests that if property rights are well-defined and trade is possible without cost, parties can negotiate to resolve externalities or conflicts over resource allocation efficiently themselves.

Optimal Allocation

The most efficient distribution of resources and efforts among various possible tasks or uses to maximize desired outcomes or objectives.

Social Good

refers to an action or a policy that benefits society at large, often with an emphasis on public resources and welfare.

Marginal Benefit (MB) Curve

A graphical representation that shows the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.