Question: Explanation and analysis 1: The Opportunity Cost of Macroeconomic Event
All societies face a trade-off between efficiency (productivity) and equity (fairness). Whenever a society focuses on production, they gain efficiency, but the makes the distribution of income and resources less fair throughout the population, so they lose equity. this provides an incentive for people to work because productivity is rewarded. but the consequence is more poverty, as those who are less productive will not be allocated much income. therefore, the apportunity cost of increased efficiency is less equity and vice versa.
for the following macroeconomic events, explicity define the apportunity cost of each macroeconemic event in terms of the cost to society or groups of individuals within the society; define what society trades off in chosing this event. in the answer include the discussion of:
- How the incentive to produce for workers and/ or firms may be affected by this event?
- How efficiency and equity for workers and/ or firms are affected by this event?
Macroeconemic Event
Event 1: the government passes a law allowing states to pay unlimited unemployment benefits to all unemployed workers for an unlimited amount of time.
Event 2: The federal goverment increases the restriction on the immigration of skilled workers.
Please, I need a word document of 200 to 250 words that contain all the answers