What is the idea of fairness based on fair rules?
What will be an ideal response?
The fair rules idea of fairness is that of providing equality of opportunity is necessary for the allocation of resources to be "fair." This is the economic application of the symmetry principle, that people in similar situations be treated similarly. Equality of opportunity can be achieved if two rules are obeyed:
• The government must enforce laws that establish and protect rights to private property that are held by individuals in society, and
• Private property may be transferred from one person to another only by voluntary exchange and without fraudulent representation.
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Differentiate between positive and normative economics using examples
What will be an ideal response?
Until recently, per-capita income increased in East Asian countries such as Hong Kong, Singapore, South Korea, and Taiwan by ________-fold every generation
A) 2 B) 3 C) 4 D) 5 E) 1
A market must be in a physical location.
Answer the following statement true (T) or false (F)
Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, it will collect tax revenue in the amount of:
A. $1,600. B. $1,200. C. $2,000. D. $0.