The Idea That Unequal Incomes Are Unfair Generally Uses the ________

question 97

Multiple Choice

The idea that unequal incomes are unfair generally uses the ________ principle of fairness.

• A) it's not fair if the rules aren't fair
• B) involuntary exchange
• C) voluntary exchange
• D) big tradeoff
• E) it's not fair if the result isn't fair

---

Definitions:

Controlling Influence

The power to govern the financial and operating policies of another entity through ownership, contract, or otherwise, often resulting in a parent-subsidiary relationship.

Parent

A company that controls other companies (subsidiaries) through ownership of more than half their voting stock or by having a significant influence over them.

Equity Method Investments

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright, typically through the ownership of 20% to 50% of the voting stock.

Cash Dividends

A financial distribution in the form of cash from a corporation to its investors as profits.