The Symmetry Principle States That

question 64

Multiple Choice

The symmetry principle states that

• A) income should be transferred from the rich to the poor up to the point of complete equality.
• B) people in similar situations must be treated similarly.
• C) the poorest person must be made as well off as possible.
• D) resources should be common property.

---

Definitions:

Resource Allocation

The process of distributing available resources among different uses identified in an economy.

Taxing Polluters

A policy approach that imposes taxes on companies or individuals who produce pollution as a means to internalize environmental externalities and encourage pollution reduction.

Positive Externalities

Benefits that affect a third party not directly involved in a transaction or activity, resulting in a positive effect on society.

Principal-Agent Problem

A dilemma in economics where one party (the agent), acting on behalf of another party (the principal), may have different goals or incentives, potentially leading to inefficiencies.