When Determining Inequality, People Consider What Might Justify an Inequality

question 7

Multiple Choice

When determining inequality, people consider what might justify an inequality such as salary differentials. Who or what do they look to?

• A) national ideologies (capitalism, communism, socialism, etc.) and institutions (government, academia, unions, certification boards, etc.)
• B) the golden rule, national myths (e.g. rags-to-riches stories), common sense, etc.
• C) the adage of resignation that "some are more equal than others"
• D) education, entrepreneurship, and expertise

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Definitions:

Positive Profits

Financial gains achieved when the total revenues exceed the total costs of a business.

Long-Run

In economics, the Long-Run is a period during which all input factors of production and costs are variable, allowing for the adjustment of all possible variables.

Short-Run Profits

Profits earned by a firm in a period where at least one factor of production is fixed.

Perfectly Competitive

Refers to a market structure where many firms sell an identical product, and no single firm can influence the market price due to its small market share.