Often politicians assert that a price, such as the price of gasoline or the rent for an apartment, is too high and that it is unfair for these prices to be so high
If these products are traded in competitive markets, what fairness rule are politicians using? Why?
The fairness rule is one of "It's not fair if the results aren't fair." The claim that the prices are too high to be fair is a claim that buyers are being unfairly harmed by having to pay such high prices. The assertion that people are harmed because the price is too high is looking at the results of the process because if the price had been lower, the assertion of unfairness would not have been made.
You might also like to view...
Which of the following is NOT money?
A) currency B) checking deposits C) checks in the checkbook D) All of the above are money.
An investment bank helps ________ issue securities
A) a corporation B) the United States government C) the SEC D) foreign governments
If monetary policy is fully anticipated by workers and firms, then it has no effect on the level of output; it affects only the price level
Indicate whether the statement is true or false
An increase in nominal GDP will:
a. Increase the transactions demand and total demand for money b. Decrease the transactions demand for money but increase the total demand for money c. Decrease the transactions demand and total demand for money d. Increase the transactions demand for money but decrease the total demand for money