The Idea of Fairness That Has Been Developed to Deal

question 96

Multiple Choice

The idea of fairness that has been developed to deal with the big tradeoff is the idea that

• A)fair distribution of the economic pie is the one that costs the richest person the least amount of money.
• B)fair distribution of the economic pie is the one that makes everyone equal.
• C)we should treat other people as we would like to be treated.
• D)fair distribution of the economic pie is the one that makes the poorest person as well off as possible.
• E)we need to make a bigger economic pie.

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Definitions:

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Excess Demand

A situation where the quantity demanded of a good exceeds the quantity supplied at a particular price, leading to a shortage.

Supply Function

A mathematical function that illustrates the quantity of a good that producers are willing and able to sell at different price levels.

Demand Function

A mathematical expression showing the relationship between the quantity demanded of a good and its price, along with other determinants of demand like income.