Economists Conclude That the Only Way to Measure Fairness Is

question 312

Multiple Choice

Economists conclude that the only way to measure fairness is

• A) to insure that the rules are fair.
• B) to insure that the result is fair.
• C) to insure that both the rules and the result are fair.
• D) to compare the allocatively efficient quantity to the equilibrium quantity.
• E) None of the above answers is correct.

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Definitions:

Unemployment Rate

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Friedman-Phelps

An economic theory associated with Milton Friedman and Edmund Phelps, focusing on the natural rate of unemployment and the relationship between inflation and unemployment.

Actual Inflation

The real rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Natural Rate

The level of any economic factor, such as unemployment or interest rates, that is unaffected by short-term fluctuations and is determined by long-term factors.