Assume the Nozick Rules Are Being Followed in the Economy

question 26

Multiple Choice

Assume the Nozick rules are being followed in the economy so that the distribution of income is fair. What must be true for this to create an efficient allocation of resources?

• A) The government must allocate resources using a command mechanism.
• B) All people are earning equal incomes.
• C) There are no public goods, monopolies, high transactions costs, or external costs and benefits.
• D) The costs of administering redistribution equals the benefits the poor receive.
• E) The government must redistribute income in a fashion that minimises the 'big tradeoff'.

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Definitions:

Hormonal Changes

Adjustments in the body's chemical messengers that can affect mood, growth, metabolism, and physical development.

Respiratory Distress Syndrome

A serious medical condition primarily affecting premature infants, where the lungs cannot provide enough oxygen to the rest of the body.

Neonatal Deaths

Neonatal deaths are deaths that occur in the first 28 days of an infant's life, often due to preterm birth, congenital anomalies, or perinatal conditions.

Preterm Babies

Infants born before completing the standard 37 to 40 weeks of gestation, often requiring specialized medical care due to underdeveloped organs.