Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A)It is paradoxical that people can be made better off by requiring them to do something that they would choose to do
• Voluntarily.
• B)It is paradoxical that people cannot be made better off by requiring them to do something that they would choose to do
• Voluntarily.
• C)Even though none contribute voluntarily, all would agree to be taxed as long as everyone else is also taxed.(True Answer
• )Correct
• D)Even though everyone contributes voluntarily, none would agree to be taxed if everyone else is not taxed.

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Definitions:

Blockade

An act of sealing off a place to prevent goods or people from entering or leaving, typically implemented as a form of economic or military pressure.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive.

Autarky

A financial strategy or condition where a nation is independent and refrains from participating in global commerce.

Free Trade

Trade that is unregulated by government tariffs or other artificial barriers; the levels of exports and imports occur naturally, as a result of supply and demand.