Author Question: At the beginning of the year, Becky's wealth was 30,000. During the year, she earned 50,000 of ... (Read 91 times)

mckennatimberlake · **on:** Jun 29, 2018

At the beginning of the year, Becky's wealth was 30,000. During the year, she earned 50,000 of income, paid 6,000 in taxes and consumed 43,000 of goods and services. What is Becky's wealth at the end of the year?

What will be an ideal response?

Question 2

Due to ongoing drought conditions, many cities in Texas have implemented water conservation measures which prevent homeowners from watering their lawns more than two times per month. Prior to the drought conditions, no restrictions were in place.

Discuss this measure from the villain/victim standpoint. Explain who the villains and victims are, and if they really are villains and victims?

alvinum · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Becky's wealth is 31,000, the sum of her initial wealth (30,000 ) plus her new saving of 1,000.

Answer to Question 2

The villains are those people who use too much water on their lawns, and the victims are those people who want to use the water for other things. This is actually just a dispute over the best use of a resource between people with competing preferences. As a result of the restrictions, people have dry, brown lawns and dying shrubs in their gardens. Without the restrictions, other people may not have been permitted to wash their cars or keep their swimming pools filled. Much of this dispute could be avoided if water were priced in the marketplace instead of by municipalities, as that would direct water to its most valued uses and encourage conservation.