Assume the Nozick Rules Are Being Followed in the Economy

question 108

Multiple Choice

Assume the Nozick rules are being followed in the economy so that the distribution of income is fair.What must be true for this to create an efficient allocation of resources?

• A) All people are earning equal incomes.
• B) There are no public goods, monopolies, high transactions costs, or external costs and benefits.
• C) The costs of administering redistribution equals the benefits the poor receive.
• D) The government must redistribute income in a fashion that minimizes the "big tradeoff."
• E) The government must allocate resources using a command mechanism.

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Definitions:

Popular Vote

The total number of votes cast by citizens in an election, as opposed to votes cast by a legislative body or electoral college.

1860 Election

The Presidential election in which Abraham Lincoln was elected as the 16th President of the United States, leading to the secession of Southern states and the eventual outbreak of the Civil War.

Inaugural Address

The speech given by a president or leader during their inauguration ceremony, outlining their vision and goals for their term in office.

Southerners

People originating from the southern region of a nation, frequently denoting those hailing from the southern United States.