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:

Tunneling

A process whereby communications are sent from one network to another in encapsulated form, usually to provide secure passage through an untrusted network.

Hydrogel Dressing

A wound care product that keeps the injury site moist and clean, promoting healing by providing optimal moisture conditions.

Moisture

The presence of a liquid, especially water, often in trace amounts.

Wound Healing

The complex process by which the skin or body tissue repairs itself after injury through various stages involving cell regeneration.