Paper 1 Econ

What are examples of expansionary fiscal measures?

-Encouraging increased consumption by lowering income taxes -Encouraging increased investment by lowering corporate taxes -Spend on major investment projects themselves to increase or improve public services

What are the effects of expansionary fiscal policy?

-Increase in AD -Decrease in unemployment -Inflationary pressure -Increase in real output, economic growth

What are examples of measures of contractionary fiscal policy?

-Increase income taxes -Increase corporate taxes -Decrease government spending

What are the bad effects of spending money on debt servicing by the gov?

-crowding out of private investors -spending in other areas cut -maintaining same benefits/services may mean higher taxes -decreases the ability of Govs to respond to emergencies

What are the consequences of poverty and inequality on living standards and social stability?

-lack of access to healthcare and education -higher infant, child and maternal mortality -higher levels of preventable diseases -social problems -social tension-> people are less likely to trust political system in the country

What are the aims of monetary policy?

-maintaining a low and stable rate of inflation -low unemployment rate -stable economic environment for LT growth -reducing fluctuations in the business cycle -achieving an external balance between export revenue and import expenditure

What are the disadvantages of progressive taxation to achieve the goal of a more equitable distribution of income?

-people may have less incentive to work harder to improve their situation if they feel they would be paying more taxes -higher corporate taxes may discourage businesses from operating at a specific place

What are the advantages of having progressive taxation to achieve the goal of a more equal distribution of income?

-seen as more equitable to lower income individuals to pay a lower tax rate since they need their income more than higher income individuals -provides the government with funds to finance its expenditures (the rich have more money therefore more sufficient funds)

What are the aims of fiscal policy?

-to maintain a low and stable rate of inflation -low unemployment rate -to reduce fluctuations in the business cycle -to stabilise the economic environment for LT growth -to promote and equitable distribution of income -to achieve an external balance between export revenue and import expenditure

How to calculate the multiplier?

1/(1-MPC) or 1/(MPS+MPM+MPM)

What causes cost-push inflation?

A decrease in SRAS as a result of increased costs of production such as increased wages, increase in costs of raw materials, increase in the costs of imported capital or raw materials. NOTE: only possible to illustrate in the New-classical model.

What is inflation?

A persistent increase in the average price level in an economy, usually measured through the calculation of a Consumer Price Index (CPI)

How do you illustrate economics growth using the AD/AS diagram?

A rightward shift of the perfectly inelastic LRAS curve

what are the consequences of inequality and poverty on economic growth?

A study by the IMF has shown that an increased share of income of the poor and middle class increases economic growth while and increased share of income of the top 20% decreases economic growth. Reasons for this are connected to the ability to invest in human capital. Leads to inequality in education and healthcare Often wealthy or higher income individuals leave the country

What are the positive consequences of economic growth?

AD tends to increase steadily as a population grows however without an increase in LRAS there would be inflation. Therefore with LT economic growth there can be a downward pressure on inflation. Unemployment decreases because more workers are needed. Depending on changes in population GDP per capita might increase meaning there is an improvement in the standards of living. National income increases and greater incomes might mean higher tax revenue which may be used to provide merit goods and help lower-income individuals. Often leads to increased levels of education and then higher demands for freedom and democracy.

What is the difference between absolute and relative poverty?

Absolute poverty is a situation where an individual does not earn enough money to meet basic human needs. This is measured as a percentage of people whose income falls below the poverty line. Relative poverty compares the incomes of individuals or households in a society with median incomes. Even if people can afford basic necessities, to see how they compare to the income typical in the society.

What factors cause economic growth?

An increase in resource quantity or improvement in resource quality. Technological change

define money

Anything that is acceptable as payment for goods and services.

How to calculate inflation?

(index for (X+1)-Index for X/index for X) x 100

What are the advantages of fiscal policy?

+pulling the economy out of a recession +ability to target sectors of the economy +direct impact with government spending on AD +Dealing with escalating inflation (contractionary) +The ability to affect potential output indirectly by creating a stable economic environment and directly by investing in human capital and encouraging firms to do the same (increase in qty or improved qlty in FoP therefore increase in LRAS) +

What are the strengths of monetary policy?

+relatively quick to implement +no political intervention; usually central banks are not political +no crowding out +The ability to target specific things (unlike fiscal)

What is cyclical unemployment(demand-deficient)?

It is caused by a decrease in AD in the economy, which leads firms to lay off workers. The phenomenon of "sticky wages"; wages staying the same despite the decrease in AD (often due to the longevity of employment contracts and pressure from trade unions) lead to wages not decreasing. It is called demand-deficient because there is not enough demand for labour and it is called cyclical because it follows the boom and bust business cycle of the economy.

Happiness index

It is put together by the UN Sustainable Development Network. The results are published in the annual World Happiness report. The main variables that were considered in 2018 were GDP per capita, social support, healthy life expectancy, freedom to make choices, generosity and perceptions of corruption.

What is Universal Basic Income?

It is when residents of a country receive a sum of money regardless of any other income they earn. The purpose is to reduce inequality and poverty and provide everyone with enough money to remain above the poverty line. Also according to its proponents since all people receive it without needing to qualify it would eliminate the negative effects of welfare.

Describe the expenditure method to measure GDP

It measures the value of all spending on goods and services and it is calculated by summing up the spending by different sectors of an economy; C+I+G+(X-M)

OECD better life index

OECD stands for Organization for Economic Cooperation and Development. Their mission is to promote economic and social well-being of people around the world. The index allows comparison of countries on 11 topics that the OECD consider essential. Material living conditions; Housing, income, jobs. Quality of life; community, education, environment, governance, health, life satisfaction, safety, work-life balance.

State the tools of monetary policy?

Open market operations, minimum reserve requirements, changes in the central bank's minimum lending rate, quantitative easing

Unemployment

People of working age who are without work, available for work, and actively seeking employment.

What are policies that are appropriate for demand-pull inflation?

Policies that reduce AD. Contractionary fiscal policy- it is politically unpopular:people don't like to see higher taxes and have their disposable income decreased there is a time lag: it takes time to implement fiscal policies because they must go through legislative bodies therefore the effects are not seen for some time Contractionary monetary policy- Unpopular with people who have loans as interest payments will increase NOTE: Monetary policy is considered most effective in affecting AD to manage inflation. Fiscal policy is not as popular due to political commitment to the public.

What are the difficulties in measuring poverty?

Poverty has different meanings; this may not be considered when comparing information. Measurement based on income does not take into consideration wealth National figures do not take into account the differences between urban and rural areas and other geo/social differences Poverty rates tell us what percentage of people fall below but not how far below Overestimation or underestimation of the national poverty line acc. to gov. goals-- ex overestimation for foreign aid

Explain two ways in which a country might establish its national poverty line (10)

Poverty-an inability to satisfy minimum consumption needs. Absolute poverty- a situation where a person or household does not earn enough money to satisfy basic human needs Relative poverty- compares the incomes of ind/households in a society with median incomes. Even if people can afford basic necessities, how do they compare to the median income earned nationally. National poverty lines measure RELATIVE poverty. Method 1- National poverty lines are set as an arbitrary percentage of the median income in the country. OECD countries set their national poverty line at 50% of median income and measure not only the poverty line of the whole population, but also targeting groups like the child poverty line (0-17 years) and old-age poverty line (65+ years). Method 2- setting the poverty line at the minimum amount of income that households need to earn to meet their basic needs for goods and services. This method not only takes into account basic needs for survival but takes into account a certain "basic" standard of living that is deemed to be acceptable. However this is controversial in how to measure "basic".

What is the difference between proportional, progressive and regressive taxation?

Proportional taxation; as income increases there is a constant tax rate Progressive taxation: as income increases, tax rate increases Regressive taxation: as income increases, tax rate decreases

Difference between real gdp/gni and nominal gdp/gni

Real GDP/GNI is simply nominal GDP/GNI adjusted for inflation

difference between replacement investment and induced investment

Replacement investment is when firms are spending on capital in order to maintain the productivity of their existing capital. Induced investment is when firms spend on capital to increase their output in response to higher demand in the economy.

investment

The addition of capital stock to the economy. Investments are carried out by firms.

What are the limitations of unemployment rates?

The national unemployment rate shows how the country as a whole is doing, but it does not take into account some disparities between different groups of people; geo disparities, gender disparities, ethnic disparities, age disparities.

What is meant by short run

The period of time when the prices of the factors of production do not change.

Aggregate Supply

The total amount of goods and services that all industries in the economy will produce at every given price level.

define aggregate demand

The total spending on goods and services in a given time period at a given price level

What are the constraints of fiscal policy?

Time lags; changing policy takes time, democratic processes take time, takes time for people to respond to changes Political pressure; may be stronger than economic pressure so perhaps the gov won't decrease taxes when needed. Unsustainable debt; sometimes governments run budget deficits to fund expansionary fiscal policy and this can become unsustainable national debt; problems in the future Crowding out effect Difficult to adjust a policy to achieve a specific target

What are the costs of unemployment?(to the unemployed themselves, to society, to the economy, to the gov)

To the unemployed themselves- lower income, lower standard of living, potential mental health issues, may have difficulty finding work in the future To society- more poverty, homelessness, can lead to crime To the economy- The economy is not operating at its fullest potential (inside PPC) so there is an inefficient use of resources, loss of real GDP To the gov- Govs may have to spend on unemployment benefits, costs to the gov from spending on social problems arising from unemployment, larger budget deficit or smaller budget surplus, more unequal distribution of income, loss of tax revenue for the gov

What are transfer payments and how do they help have a more equal distribution of income

Transfer payments are made by the gov to individuals to redistribute income away from certain groups and towards others. They transfer money from those that pay taxes to those that need assistance. sometimes called "welfare payments" or "social security". Old age pensions, disability pensions, unemployment benefits, maternity benefits, student loans etc.

Describe the recession period of the business cycle

Two consecutive quarters of negative GDP growth. Firms lay off workers therefore unemployment increases.

What is the difference between equity and equality?

Equity is the idea of fairness; it is a normative concept. Equality is when people have the same amount of something. Equality in the distribution of income would mean that everyone earns the same amount regardless of what skills they provide to the labour market. Equity in the distribution of income refers to the fairness in the distribution of income. This is also referred to as equality of opportunity, regardless of any characteristic that is acquired by the individual at birth. Increased fairness or "equity" can be achieved through macroeconomic policies such as higher taxes on individuals earning higher incomes. The Lorenz curve is the measurement tool to illustrate income inequality

Imports

Goods and services that are bought from foreign producers. This results in an outflow of import expenditure.

Happy Planet Index

HPI measures sustainable well-being; how well countries are doing at achieving long and happy lives, taking sustainability into account. four elements are taken into consideration; well-being, life expectancy, inequality of outcomes, ecological footprint.

Describe the recovery period of the business cycle

In simple terms it is economic expansion that is driven by an increase in aggregate demand. To meet the increase in aggregate demand by households, firms increase their output and take on more workers which makes unemployment decrease. Newly employed workers spend their money on goods and services which makes consumption increase and leads to aggregate demand to increase even more

What is the difference between income and wealth?

Income is money earned from work or investments while wealth is the value of money, assets and things of value that people own (ex. stocks, bond, land, houses etc.).

What is investing in human capital and how does it help have a more equal distribution of income?

Investing in human capital includes targeted programmes to those that lack the opportunities to otherwise access them. Examples of such policies include; public health insurance, improved access to child-care and preschool programmes, recruitment of quality teachers etc.

What causes demand-pull inflation?

It happens due to an increase in AD as a result of an increase in any of its components

What is a budget surplus?

when tax revenue exceeds gov expenditure

What are the costs of deflation?

Unemployment: If AD falls firms will have to lay of workers Deferred Consumption: if prices fall, consumers will wait for prices to fall even further before buying durable goods, leads to a decrease in AD and a deflationary spiral Fall in consumer confidence/uncertainty: if consumers are uncertain about the future consumption may decrease causing AD to decrease; deflationary spiral Effect on Investment: when inflation happens businesses get less profits and possibly even losses so, investment decreases and therefore AD decreases even further; deflationary spiral Cost to debtors: the value of debt rises with deflation Policy ineffectiveness: low or negative interest rates with deflation make expansionary monetary policy ineffective

Deflation diagram

When AD shifts left or AS shifts right

What is a budget deficit?

When government expenditures exceeds tax revenue

How does the central bank implement expansionary monetary policy?

When the CB changes the base interest rate, it affects other interest rates in the economy. This can lead to changes in the components of AD; if interest rates are low it reduces the cost of borrowing money which can lead to an increase in consumer spending and investment (also consumers are less likely to save because IR are low). Increasing the money supply would lower interest rates. This would also likely decrease unemployment but there will be inflationary pressure.

What is meant by the multiplier effect?

Whenever there is a change in a component in AD, there is likely to be a multiplied effect on GDP

What is the Gini coefficient?

a summary measure of the information provided by the Lorenz curve

What is poverty?

an inability to satisfy minimum consumption needs

What is economic growth?

an increase in real GDP over time

How is the minimum reserve requirement used as a tool of monetary policy?

chaining it to influence how much money is created; increasing money supply by decreasing min. reserve. requirement, decreasing by increasing min requirement

How to draw a lorenz curve

cumulative percentage of income y-axis. cumulative percentage of population x-axis. The line of perfect income equality goes from the origin to the top right hand corner of the box.

What is the difference between direct and indirect taxation?

direct taxes are paid directly to the government by the taxpayer (personal income tax, corporate income tax, wealth tax) while indirect taxes are taxes on spending on goods and services (sales tax, tariffs etc.).

What is the demand for money and how to illustrate it?

downward sloping. As interest rates decrease, quantity demanded increases.

what are supply side shocks?

factors that will cause changes in the costs of production

What are the different types of unemployment?

frictional, seasonal, structural, cyclical

Describe the boom period of the business cycle

increasing aggregate demand in an economy eventually leads to higher average prices. As an economy "booms" it is likely that inflationary pressure will build up which will cause the rate of growth of GDP to fall.

How does the central bank implement cotractionary monetary policy?

increasing base interest rate or reducing money supply. Can close an inflationary gap. With higher IR cost of borrowing increases therefore investment and consumer spending decreases.

What are the causes of inequality and poverty?

inequality of opportunities discrimination market-oriented supply side policies globalisation and tech advances have affected diff types of labour differently

What is the base (discount or prime) interest rate?

interest rate set by the country's central bank

What is bad deflation?

it happens as a result of a decrease in AD. It leads to a decrease in total output and a rise in unemployment.

Describe the output method to measure GDP

it measures the actual value of goods and services produced. It's the sum of the value added by firms in an economy. The costs of input at each stage of production are subtracted (to avoid double counting)

Describe the income method to measure GDP

it measures the actual value of incomes is earned in an economy

What are policies in economics to reduce discrimination?

laws ensuring equal pay for equal work, positive action to encourage gender diversity in workplaces, legislation to make it illegal to discriminate in workplace, education, rent,,, diversity quotas or targets in work places

What is MPC

marginal propensity to consume - the fraction of add income spent on goods and services

MPI

marginal propensity to import - fraction of add income spent on imports

MPS

marginal propensity to save - fraction of add income saved

MPT

marginal propensity to tax - fraction of add income taxed

Full employment level of output

maximum level of production an economy can produce using all of its factors of production at sustainable levels

What is seasonal unemployment?

occurs when the demand for certain types of labor changes on a seasonal basis. Farm workers hired when needed to harvest crops, tourist industry workers, gardeners etc.

Describe the trough period of the business cycle

output cannot continue to fall forever. There will always be; savings, people with jobs( that can spend money on goods and services). Foreigners will demand exports, governments will continue to spend by running budget deficits. Therefore, the cycle will then enter the recovery phase and the cycle will repeat itself again.

labor force

people who are available for work and actively looking for it

What is hidden unemployment?

people who are not considered unemployed but are in fact, not fully employed; ex. unemployed people who became discouraged, underemployed(not having enough paid work/ not doing work that makes full use of their skills and abilities), people working in jobs for which they are overqualified

Business cycle

periodic fluctuations in economic activity measured by changes in real GDP

What is 'minimum reserve requirement'?

required reserve ratio; the percentage of commercial banks' deposits that they are really required to hold as reserves to meet the cash requirements of their depositors

What is frictional unemployment?

short-term unemployment that occurs when people are in between jobs, or are transitioning from their studies to their first job. Does not include a lack of skills that are in demand and is therefore less serious than structural unemployment.

What is the supply of money (Sm)?

the amount of money in circulation set by the central bank. It is a fixed amount and therefore a vertical line

What are open market operations (tool of monetary policy)?

the buying and selling of government bonds in the financial market -to increase money supply by purchasing bonds; central bank pays a commercial bank for the bonds which increases excess reserves and lending abilities of the commercial bank -to decrease money supply by selling bonds- commercial banks pay the central bank for the bonds, decreasing excess reserves and lending abilities of the commercial bank

Define interest rate

the cost of borrowing money

what is debt servicing?

the interest on debt. As DS costs increase gov debt increases

Changing the central banks minimum lending rate as a tool of monetary policy?

the interest rate at which the central bank lends money to commercial banks. increasing money supply by decreasing lending rate and vice versa

What is money creation?

the process by which commercial banks create money when they make loans

What is the natural rate of unemployment?

the sum of frictional, structural and seasonal unemployment When the economy is at full employment there will still be unemployment which is considered normal. When the labor market is in equilibrium, the number of people looking for work will be equal to the number of job vacancies in the economy. However, there will be some workers that are unwilling or unable to take the jobs that are available( people affected by seasonal, frictional and structural unemployment)

What is governmental debt?

the total amount of money a government owes to its creditors, both domestic and foreign

GNI

the total income that is earned by a country regardless of where the assets are located (GNI= GDP+ net property income from abroad)

unemployment rate

the total number of people that are unemployed, expressed as a % of the total labor force

GDP

the total value of all final goods and services produced in an economy in a year( regardless of who owns the financial assets; even foerigners)

Why is there no trade-off between inflation and unemployment in the long run

there is only a trade-off in the short-run. In the long run there is a given nature rate of unemployment. For example say, the government decides to decrease unemployment using expansionary demand-side policy. Unemployment rate decreases and inflation rate increases. Because AD increases AD of labour increases as well and increases wage levels. However, these are just nominal wages that are increased, because of inflation higher wages are used to pay higher prices. real wages stay the same. the lower unemployment occurs due to a money illusion; people who were unwilling to work took jobs because it sounded like they would earn more. When workers realise that real wages stay the same they are no longer willing to work for that wage. In this way, there is no real trade off in the long-run.

Negative output gaps and Positive output gaps

At a negative output gap the economy is producing below the long-term trend and unemployment is likely to be a problem.At a positive output gap the economy is producing above the long-term trend a.k.a. beyond capacity and therefore inflation is likely to be a problem.

Why is wealth inequality generally far more unequal than income inequality?

Because earning a low income makes it hard for individuals to save money and accumulate wealth. High income people consume a smaller portion of their income giving them greater possibilities to save and accumulate their wealth.

What is an inflationary spiral?

Because of the higher price level, costs of production will rise as workers demand higher wages(cost-push inflation). Workers will have an illusion that they have more purchasing power and will spend more (demand-pull inflation). This will continue again and again.

What is crowding out? (Macro objective: unemployment)

Crowding out is when governments run budget deficits by borrowing money from selling bonds in order to stimulate their economy and reduce unemployment his causes the demand for loanable funds in the economy to increase and results in an increase of interest rates, causing business borrowing (and I in the AD equation) to decrease. Crowding out is an increase in G at the expense of a decrease in I. The final shift in AD depends on whether or not government spending (G) outweighs the decrease in investment due to higher IR and therefore, less loanable funds available in the economy. Keynesian economics believe that this will no occur if the economy is producing at less than full employment while new-classical economists argue that this is a significant problem and some say its worse because the supply of loanable funds is perfectly inelastic.

What are the possible solutions to the different types of unemployment?

Cyclical: Keynesian demand management policies to increase AD; expansionary fiscal or monetary policy Structural: making changes in the education system long-term, provide training programs, encourage people to move to different areas through tax breaks or subsidies, subsidise firms that train individuals Frictional:Market-based approach: Govs could reduce unemployment benefits. Interventionist: improve flow of information such as job websites, job counselling etc. Seasonal: Encourage people to get jobs during off-season, improve flow of information, reduce unemployment benefits.

How would a government manage cost-push inflation?

Deflationary demand policies +they bring down average PL -they lower total output and increase unemployment Supply side policies most effective to fight cost-push inflation +the gov. encourages increased productivity and efficiency of businesses

What shouldn't deflation be confused with?

Disinflation, which is a FALLING RATE OF INFLATION. Deflation is BELOW 0

Exports

Domestic goods and services that are bought by foreigners. This results in an inflow of export revenues to the country.

Negative effects of economic growth

Economic growth often occurs due to structural changes in the economy and this may lead to structural unemployment. Negative effects on the environment and negative externalities of production Higher incomes may be because of a sacrifice in leisure time, neglecting personal relationships, which may not increase living standards.

Economic vs. Income vs. Wealth Inequality

Economic inequality is the degree to which people in a population differ in their ability to satisfy their economic needs- ex. inequality in living conditions. Income inequality arises from differences in the amount of income people earn Wealth inequality arises from differences in the amount of wealth people own

What is structural unemployment?

It occurs as a result of the changing structure of the economy. It may occur due to a permanent decrease in demand for a particular type of labor in the economy. As an economy grows, new jobs develop while others disappear. This leads to long-term unemployment due to a lack of skills to take on the newly created jobs because people lack occupational mobility to take these jobs. If jobs simply move elsewhere, there may be a lack of geographical mobility for people to take on the jobs. Another form of structural unemployment is labour market rigidities that prevent the market forces of supply and demand from operating freely in the economy. The include minimum wage legislation, employment protection laws making more difficult for firms to fire workers, generous employment benefits reducing the incentive to work etc.

What are limitation of the Consumer Price Index in measuring inflation?

It represent a "typical" household in the country. Errors in data collection. Changes in habits over time lead to changes in goods in the CPI making comparisons less reliable. It also takes time to make these changes to reflect actual consumption habits. different countries measure in different ways making International comparisons difficult to take place. other price changes are important to take note of too in order to understand the actual health of an economy; such as raw material prices.

What is good deflation?

It's when there are improvements in the supply side of an economy and/or increased productivity. it leads to an increase in total output and a fall in unemployment.

What are the costs of high inflation?

Loss of purchasing power: if average prices in the economy increase, but incomes stay the same people cannot buy as much Less saving in banks: if one saves money and get payed interest, but the inflation rate is higher than the interest rate, one will be able to buy less goods later so they would be better off spending it Effect on interest rates: if nominal interest rates are lower than the inflation rates, banks will increase interest rates to earn money Effect on international competitiveness: higher average prices of goods in the country lead to less exports Uncertainty: may lead to reduced investment Labor unrest: if wages don't keep up with inflation it could lead to labor disputes.

What is the MPI and what does it measure?

Multidimensional Poverty Index. Developed by the UN. Has 3 dimensions; health, education, and living standards. Each of these dimensions reflect deprivations in these areas. Looks at beyond just incomes and looks at areas where there are issues. Countries are considered poor when people are deprived in at least 1/3 of the areas.

Who are the winners and losers when inflation happens?

Winners -people with index-linked incomes, meaning their incomes will increase in line with inflation -people with high wage-bargaining power- this includes people in high-demand industries and strong trade unions -borrowers, the real interest rate is decreased with inflation; the amount payed back by the borrower will be worth less than the loan -people that are "asset-rich". In times of high inflation there is often a 'flight to assets' because people buy assets as opposed to saving. This leads to increases in prices of assets such as houses and this benefits people that already own assets. -Importers. Imports are relatively more attractive because the prices of domestic products are increasing Losers -people on fixed incomes/wages because their purchasing power decreases over time (pensioners, people relying on state benefits, workers on LT fixed wage contracts. - people with low wage bargaining power; incl workers in low demand industries -savers and lenders -people who are "cash rich" -Exporters

What is the consumer price index?

a measure that examines the weighted average of prices of a basket of consumer goods and services such as transportation, food and medical care

What is deflation?

a persistent fall in the average price levels in an economy

What is fiscal policy?

a set of government policies related to expenditure and taxation rates

What is monetary policy?

a set of official policies governing the supply of money and the level of interest rates in an economy

Quantitative easing as a tool of monetary policy

this is similar to buying gov bonds however involves more types of financial assets in greater quantities and on a larger scale. Central banks buy large quantities of assets that commercial banks own. Used when IR are so low that conventional monetary policy is ineffective.

What are the weaknesses of monetary policy?

time lags; even though IR can be changed quickly it takes time for these changes to have an effect on the economy ineffectiveness when IR are low; when they are close to 0 there is little room left for further cuts on IR

What does the Phillips curve show?

tradeoff between inflation and unemployment (inverse relationship)

What are ways (other than progressive taxation) to achieve a more equitable distribution of income?

transfer payments, investment in human capital, policies to reduce discrimination, minimum wage and price controls, universal basic income