What Is Involved in Determining the Most Socially Desirable Level

question 126

Multiple Choice

What is involved in determining the most socially desirable level of income equality?  

• A) activities done through markets, rather than by the government 
• B) activities done directly by firms 
• C) normative economics 
• D) an evaluation of all externalities, both positive and negative

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Definitions:

Consumer Safety

Refers to the efforts and policies that protect consumers from products, services, or practices that may cause harm.

Principal-Agent Problem

A conflict in priorities between a person or group making decisions on behalf of another person or group.

Political Corruption

The use of powers by government officials for illegitimate private gain.

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed legislation or interests.