Rawls' "Difference Principle" States That

question 46

Multiple Choice

Rawls' "difference principle" states that

• A) there should be no differences in people's e economic rewards.
• B) society should not control the distribution of wealth.
• C) social and economic inequalities should be arranged to result in the greatest benefit to the least advantaged.
• D) social and economic differences are acceptable as long as they result from differences in people's natural abilities.

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Definitions:

Effective Annual Rate

The interest rate on a loan or financial product restated on an annual basis, accounting for compounding over the term.

Compounded Continuously

The process of calculating interest on an investment or loan where the interest is reinvested and earns additional interest constantly over time.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, represented as a proportion of the principal sum.

Present Value

Today's monetary equivalent of a future amount of money or cash flow sequences, using a specified rate of return.