The philosopher John Rawls argued that if people could make arrangements about how society would be organized before they were born that one of the principles that we would agree upon is that social and economic inequalities are to be arranged so
that they are to be of the greatest benefit to the least-advantaged members of society. What economic strategy sounds akin to this idea? Explain.
In game theory, a maximin strategy is a strategy chosen to maximize the minimum gain that can be earned. The idea is that since people are ignorant of what their state in the society will be that they will opt for a strategy that will benefit those at the bottom of the economic latter the greatest since it is very possible that any one person could find him or herself there.
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Comparative advantage is based on the
A) concept that some countries are superior to others. B) concept of absolute advantage of producing goods in different countries. C) concept of relative opportunity cost of producing goods in different countries. D) concept that some countries are better endowed with natural resources.
Changing the ownership of the ocean from common property to private property would
A) ensure that this resource would be allocated in a more efficient manner. B) ensure that this resource would be allocated in a less efficient manner than under common property rights. C) not be economically desirable. D) result in no appreciable change in efficiency of utilization of this resource.
If a pair-wise majority vote was held and the voters' preferences are shown in the table, assuming public parks and the zoo was the first pair to be voted on, which option would win overall?
A. Public transportation
B. Public zoo
C. Public parks
D. Both Public parks and zoo.
Which of the following examples would make banks most likely to give loans?
a. A bank receives $10 million from the Fed; interest rates are at 1 percent. b. A bank receives $5 million from the Fed; interest rates are at 7 percent. c. A bank receives $2 million from the Fed; interest rates are at 4 percent. d. A bank receives $1 million from the Fed; interest rates are at 5 percent.