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.

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Definitions:

CPI

The CPI (Consumer Price Index) is a metric that tracks the average fluctuation in prices that urban consumers experience for a selection of consumer goods and services over time.

Base Year

A specific year against which economic or financial data is measured and compared to track growth, inflation, or other economic indicators.

Cyclical Unemployment

A type of unemployment that relates to the cyclic trends in the economy over time, often tied to changes in the business cycle.

Overall Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, reflecting the health of an economy.