The Three Types of Distributional Equity Are

question 11

Multiple Choice

The three types of distributional equity are:

• A) Vertical, intergenerational, and horizontal
• B) Vertical, social, and intergenerational
• C) Horizontal, social, and intergenerational
• D) Vertical, horizontal, and social

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Definitions:

Price Floor

A legally established minimum price that can be charged for a good or service, typically above the equilibrium price, to prevent market prices from falling too low.

Subsidy

A financial grant or support extended by the government to individuals, businesses, or industries to encourage certain activities or lower their costs.

Public Choice Theory

An economic theory that studies how public decisions and policies are made, applying methodologies and understanding from economics to political science.

Self-interest

A principle in economics that suggests individuals usually act in a way that is most beneficial to themselves, based on their preferences and objectives.