According to Rawls's ____ Argument, If We Didn't Know Whether

question 34

Multiple Choice

According to Rawls's ____ argument, if we didn't know whether or not we were a member of a vulnerable group, we would want to hedge our bets by making sure the society takes care of vulnerable people.

• A) veil of ignorance
• B) universal law of nature
• C) good will rule
• D) categorical imperative

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Definitions:

Insurance

A financial product that provides protection against potential loss, transferring risk from an individual or entity to an insurer.

Moral Hazard

The situation where one party takes more risks because they know they are protected, typically through insurance or other safety nets, leading to potential loss for the other party.

Financial Crisis

A situation where the value of financial institutions or assets drops rapidly, leading to a loss of confidence in the financial system, possible bank runs, and reduced lending and spending.

Adverse Selection

A market process in which unwanted results occur when buyers and sellers have asymmetric information, typically resulting in high-quality goods or services being driven out of the market.