In Opposition to Social Contract Theory,David Hume Argued

question 46

Multiple Choice

In opposition to social contract theory,David Hume argued

• A) the government must have absolute power in order to avoid chaos.
• B) the government derives its authority from God.
• C) there is no legitimate authority for government.
• D) governments are formed by conquest or succession.

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Definitions:

Price Ceiling

A legally established maximum price that can be charged for a good or service.

Deadweight Loss

The reduction in economic productivity that takes place when a good or service fails to achieve or cannot achieve its balance point.

Equilibrium Price

The rate at which the amount of products offered matches the amount of products consumers desire in the marketplace.

Demand Functions

Mathematical formulas representing the relationship between the quantity demanded of a good or service and its price, along with other factors like income and prices of related goods.