An Unequal Distribution of Income Is Considered Fair According to Robert

question 103

Multiple Choice

An unequal distribution of income is considered fair according to Robert Nozick if

• A) marginal cost equals marginal benefit.
• B) the cost of administering a welfare system is minimized.
• C) property rights are enforced and voluntary exchange occurs.
• D) the economy is producing its maximum total output.
• E) resources are allocated using the command method.

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Definitions:

Stock Out Costs

The costs associated with running out of stock, including lost sales, diminished customer loyalty, and operational disruption.

Accounts Payable Period

The Accounts Payable Period is the average amount of time it takes for a business to pay off its suppliers after receiving goods or services.

Operating Cycle

The average period of time required for a business to convert its investments in inventory back into cash through the process of producing goods, selling them, and collecting revenue from customers.

Cash Cycle

The period between the outlay of cash for the purchase of inventory and the collection of cash from customers in a business operation, reflecting the liquidity and efficiency of the company.