The reason people in Professor Rawls' thought experiment would choose an equal distribution of income is that:
A. people are risk-neutral.
B. it is the easiest distribution to implement.
C. they are concerned about the welfare of others.
D. they fear ending up in a disadvantaged position themselves.
Answer: D
You might also like to view...
Which would be least likely to cause the production possibilities curve to shift to the right?
a. An increase in the labor force. b. Improved methods of production. c. An increase in the education and training of the labor force. d. A decrease in unemployment.
An increase in the capital stock would shift the production function _______ and the long-run aggregate supply curve to the _______.
A. upward; right B. upward; left C. downward; left D. to the right; right
Refer to the given data. At the profit-maximizing level of employment, this firm's total labor cost will be:
A. $16.
B. $30.
C. $24.
D. $32.
Assume the union contract wage exceeds the market-clearing wage. If there is an increase in the labor supply, then the number of unemployed workers will ______ and the number of employed workers will _______.
1) increase; increase 2) decrease; increase 3) increase; decrease 4) increase; not change