Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Discuss the factors that cause the average income of nonwhites to be lower than the average income of whites.
Explain how welfare creates work disincentives.
Explain the changes in welfare caused by the "Personal Responsibility and Work Reconciliation Act" of 1996.
Education is often used as an example of a positive externality. Are the external benefits greater for elementary, secondary, or college education? Explain.
Explain why the optimal level of pollution is not zero. According to an EPA study, the health hazards of Superfund sites have been greatly exaggerated and air pollution tends to be a bigger health hazard than toxic waste dumps. Why is more attention focused on toxic waste dumps than on air pollution?