Which of These Statements Is/are TRUE

question 267

Multiple Choice

Which of these statements is/are TRUE?
I. Through his "maximin principle," Rawls argued that restrictions on the market should be minimized in order to maximize peoples' ability to earn income.
II. Traditional causes of poverty include too much human capital, mental or physical disabilities, and drug addictions that inhibit persons from achieving gainful employment.
III. Poverty thresholds were based on the Department of Agriculture's Economy Food Plan, the least expensive plan by which a family could feed itself.

• A) I only
• B) II only
• C) III only
• D) I, II, and III

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Definitions:

Negative-Sum Game

In game theory, a game in which the gains (+) and losses (−) add up to some amount less than zero; one party’s losses exceed the other party’s gains. A strategic interaction (game) between two or more parties (players) in which the winners’ gains are less than the losers’ losses so that the gains and losses sum to a negative number.

Positive-Sum Game

A situation in game theory in which the sum of gains and losses is greater than zero, indicating that all participants can benefit from cooperation or competition.

Oligopoly

A market structure characterized by a few firms controlling a large portion of the market share, influencing prices and competition.

Competitive Ideal

An economic theory suggesting that markets perform optimally when there is a high level of competition among firms, leading to better products and services for consumers.