1. If we have to choose between compassion and incentives, which should we choose? Do the terms of the trade-off matter?
2. If poor people don’t want to work, should they get welfare? What about their children?
3. In what ways to do younger workers pay for Social Security benefits received by retired workers?
4. Who pays the economic cost of Social Security? In what ways?
5. Suppose a lawyer can type faster than any secretary. Should the lawyer do her own typing? Can you demonstrate the validity of your answer?