1. Describe how welfare creates work disincentives.
2. Education is habitually used as an example of a positive externality. Are the external welfares greater for elementary, secondary or college education? Explain.
3. Describe the changes in welfare caused by the Personal Responsibility as well as Work Reconciliation Act of 1996.
4. Describe how property rights as well as negative externalities are related.
5. How is the life-cycle outline of income related to the measurement of income equality at a point in time? What are the differences among social insurance programs and income assistance programs?