If Redistribution Is a Public Bad, Rather Than a Public

question 52

Multiple Choice

If redistribution is a public bad, rather than a public good, redistributing income to the poor makes others feel that society is:

• A) unjust and therefore decreases their utility.
• B) unjust and therefore increases their utility.
• C) more just and therefore decreases their utility.
• D) more just and therefore increases their utility.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.

Stadium Capacity

The maximum number of spectators that a stadium can accommodate during an event, determined by its physical size and safety regulations.