The Fair Rules Approach to Fairness Requires

question 142

Multiple Choice

The fair rules approach to fairness requires

• A) consumer surplus equals producer surplus.
• B) income transfers from rich to poor.
• C) property rights and voluntary exchange.
• D) that marginal cost equal marginal benefit.
• E) consumer surplus exceed producer surplus because there are more consumers than producers.

---

Definitions:

Frederic Bastiat

A French economist and writer known for his theories on free markets and the unseen economic consequences of government intervention.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, subsidies, or prohibitions to encourage international trade.

Protection

Policies or measures taken by a government to shield its domestic industries from foreign competition, often involving tariffs or quotas.

Gasoline Prices

The cost per unit of gasoline, influenced by factors such as crude oil prices, refinery processes, taxes, and demand.