Explain the modified version of utilitarianism proposed in the book entitled "A Theory of Justice," by the philosopher John Rawls and its relationship to the "big tradeoff."
What will be an ideal response?
Rawls was aware that extensive redistribution of income could decrease the average income, which is the tradeoff captured by the "big tradeoff." Thus perfect equality of income might result in everyone having lower income than would otherwise be the case. To overcome this issue, according to John Rawls, the fairest distribution of the economic pie is the one that provides the poorest person the largest income possible. Hence less redistribution will take place than if perfect equality was the goal. As a result, average income will decrease less and the poorest person would be better off.
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Refer to the table below. The marginal cost of the 3rd unit of this activity is:Units ofActivity TotalCostTotalBenefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. $30 B. $10 C. $20 D. $25
The main goals of monetary policy include all of the following EXCEPT
A) attaining the maximum sustainable growth of potential GDP. B) keeping the unemployment rate close to the natural unemployment rate. C) keeping the long term nominal interest rate equal to the real interest rate plus the inflation rate. D) keeping the inflation rate low. E) keeping the long-term interest rate at a moderate level.
A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will ________ and its profit will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Monopolistic competition means
A) monopolies from several countries compete in the global market. B) a large number of firms producing homogeneous products. C) a large number of firms producing differentiated products. D) few firms producing differentiated products.