Assume That Joe Is Willing to Produce Another Hamburger That

question 136

Multiple Choice

Assume that Joe is willing to produce another hamburger that costs $1 to make.Mary is hungry and is willing to buy a hamburger for $3.According to the equilibrium principle,Joe and Mary

• A) will make a trade.
• B) will only make a trade if Joe can get Mary to spend more than $3 for the hamburger.
• C) will only make a trade if Mary can get Joe to charge less than $1 for the hamburger.
• D) may or may not make a trade.
• E) will never trade;they will look for better deals.

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Definitions:

Utilitarian Justice

A principle in ethics and economics that a decision should be made so as to maximize overall happiness and reduce suffering among all people affected by the decision.

John Stuart Mill

A British philosopher and economist, known for his contributions to liberalism, utilitarianism, and political economy.

Income Redistribution

The policy or practice of adjusting the distribution of income in a society to achieve social or economic objectives.

Ideal Distribution

A theoretical distribution model that optimally allocates resources or products to meet demand efficiently.