The Main Idea of Fairness Is Based on Which of the Following

question 60

Multiple Choice

The main idea of fairness is based on which of the following rules? a.The state must enforce laws that establish and protect private property.
B.Goods and services that produce externalities must be owned by the state,monopolies must be eliminated,and common resources must follow the rules of the competitive market.
C.The state must enforce tax laws so that after taxes are paid and benefits are received,the gap between rich and poor is as small as possible.
D.Private property may be transferred from one person to another only by voluntary exchange.

• A)Rules a and d
• B)Rules b and d
• C)Rules b and c
• D)Rules a and c
• E)The main idea of fairness is not based on any of these rules.

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Definitions:

Benefits To Consumers

The advantages or improvements in welfare, service, or product quality experienced by consumers.

Cost To Suppliers

The total expenses incurred by suppliers in the process of producing and selling goods or services.

Externality

A consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.

Market Failure

Situations where the allocation of goods and services by a free market is not efficient, often requiring government intervention.