Question 1

"Equality of opportunities is more important than equality of incomes." This statement would be most likely attributed to which political philosophy?

Accepted Answer

Libertarianism emphasizes individual liberty and minimal government intervention, and it typically supports equality of opportunities rather than equality of incomes.

Question 2

Robert Nozick criticizes Rawls' concept of justice by using an example of

Accepted Answer

Nozick uses the example of the grade distribution in an economics class to critique Rawls' concept of justice as fairness. He argues that even if the initial distribution of grades is equal, students may have different abilities, efforts, and natural talents, resulting in unequal outcomes that should be considered just. This challenges Rawls' focus on the distribution of primary goods, such as income and wealth, without considering individual differences and voluntary exchanges.

Question 3

Libertarianism identifies a redistribution of income role for government when

Accepted Answer

The answer of Libertarianism identifies a redistribution of income role...

Question 4

According to the maximin criterion,income should be transferred from the rich to the poor as long as it

Accepted Answer

The maximin criterion focuses on maximizing the minimum level of well-being of the least fortunate, so income should be transferred from the rich to the poor as long as it raises the well-being of the least fortunate. Choice B is not a part of the maximin criterion but rather a condition for efficiency in taxation. Choice C promotes an equal distribution of income, but it is not the main focus of the maximin criterion. Choice D is not relevant to the maximin criterion.

Question 5

According to a libertarian,if income were to be distributed equally,

Accepted Answer

According to libertarians, if income were to be distributed equally, there would be no incentive for people to work harder or take risks to create wealth, leading to a decrease in productivity. Therefore, the most appropriate option would be D.

Question 6

Figure 20-3 -Refer to Figure 20-3.If the government imposes a minimum wage above W_o,it is likely to

Accepted Answer

If the government imposes a minimum wage above W_o, it will increase the cost of labor for firms, leading to a decline in demand for labor. As a result, the quantity of employment would decline to a level below Q_o. Thus, choice B is the correct answer. Choice A is incorrect because higher wage costs would lead to reduced employment, meaning that the employment level would not rise above Q_o. Choice C is also incorrect because although the minimum wage would provide higher income levels to those working, it would be offset by the decline in employment, meaning that the gain in income would be offset by the loss of employment for some workers. Finally, choice D is incorrect because the minimum wage would surely affect the level of employment.

Question 7

Libertarians believe that

Accepted Answer

Libertarians prioritize evaluating the process by which economic outcomes are produced, rather than the outcomes themselves. They believe in minimal government intervention in the economy, promoting individual liberty and free market principles. Therefore, they focus on ensuring a fair and level playing field rather than attempting to artificially redistribute income or wealth.

Question 8

Would the maximin criterion achieve perfect income equality?

Accepted Answer

Complete income equality would reduce incentives to work and would ultimately result in reduced total income, which would harm even the worst-off in society. Therefore, the maximin criterion would not achieve perfect income equality.

Question 9

A society consists of three individuals: Arthur,Billie,and Chris.In terms of income and utility,Arthur is currently best-off,Billie ranks in the middle,and Chris is worst-off.Which of the following statements is correct?

Accepted Answer

Liberalism, particularly as described by John Rawls, suggests that policies should focus on improving the situation of the least advantaged, which in this case is Chris.

Question 10

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Accepted Answer

Libertarianism emphasizes individual rights, free markets, and limited government intervention in economic and social affairs. Redistributing income is seen as a violation of individual property rights and the free market, thus it is not supported by libertarian philosophy. However, the government's role in punishing crimes and enforcing voluntary agreements is seen as essential to maintaining a functioning society.

Question 11

Which political philosophy focuses on the process of determining the distribution of income rather than on the outcome?

Accepted Answer

Libertarianism emphasizes the process of distribution, advocating for minimal state intervention and focusing on individual rights and voluntary exchanges rather than specific outcomes.

Question 12

If society chose to maximize average utility rather than minimum utility,

Accepted Answer

Maximizing average utility means that the goal is to create the greatest overall happiness for all members of society, not just the least happy. This is a utilitarian approach to justice that values the overall welfare of society. Rawlsian justice, on the other hand, focuses on maximizing the well-being of the least advantaged members of society. Therefore, if society chose to maximize average utility, its justice would be more utilitarian than Rawlsian.

Question 13

Liberalism suggests that public policies should aim to

Accepted Answer

Liberalism emphasizes social equality, and maximizing the well-being of the worst-off person in society is consistent with this goal. This approach is known as the difference principle, advocated by the philosopher John Rawls, in which social and economic inequalities should be arranged to benefit the least advantaged members of society.

Question 14

"Only individual members of society earn income,not society itself." This statement is most closely associated with the political philosophy of a

Accepted Answer

This statement is most closely associated with the political philosophy of libertarianism, which emphasizes individual rights and freedoms, limited government intervention in the economy, and the importance of the free market. Libertarians believe that individuals should be free to earn and keep their own income, rather than having it redistributed by the government or society as a whole.

Question 15

Bill earns more than Donna.A legislator proposes taxing Bill to supplement Donna's income.A libertarian would view this proposal as

Accepted Answer

A libertarian would argue that taxation to supplement Donna's income is an inappropriate role for government since it involves a moral redistribution of income that does not belong to the government. According to libertarian philosophy, individuals have the right to keep the fruits of their labor, and it is not the government's role to take from one person to give to another.

Question 16

Libertarians believe that in considering economic fairness,one should primarily consider the

Accepted Answer

Libertarians focus on the process by which economic outcomes arise rather than the outcome itself. They believe in free markets and limited government intervention, with individuals being responsible for their own economic success or failure. The concept of economic fairness is centered on the idea that the process should not be influenced by external factors such as government regulation or social inequality. Therefore, the best choice is B.

Question 17

In general,which of the following would libertarians argue is more important than equal outcomes?

Accepted Answer

Libertarians value individual freedom and the opportunity for individuals to succeed based on their own talent and effort rather than equal outcomes. Therefore, they prioritize equal opportunities for all individuals to achieve success in their own way.

Question 18

The maximin criterion suggests that social policy should

Accepted Answer

The maximin criterion suggests that social policy should prioritize the well-being of the worst-off group in society. Therefore, choice C, which focuses on elevating the well-being of those at the bottom of the income distribution, is the best choice. Choices A and B are not necessarily implied by the maximin criterion, and choice D is too broad and does not specifically address the needs of the worst-off group.

Question 19

The rule for redistribution proposed by John Rawls in his book A Theory of Justice is called the

Accepted Answer

The rule for redistribution proposed by John Rawls is called the maximin criterion. This criteria maximizes the minimum welfare of individuals. Rawls argues that redistributive policies should be designed to benefit the worst-off members of society, which is in line with the maximin criterion.

Question 20

Binding minimum-wage laws

Accepted Answer

Binding minimum-wage laws create a market imbalance because they artificially raise the wage rate above the equilibrium level, resulting in an excess supply of labor (higher unemployment) and a shortage of labor demand. This can negatively impact small business owners who cannot afford to pay the new minimum wage and must either cut back on labor or go out of business. However, proponents argue that minimum-wage laws can help reduce poverty and income inequality, particularly in low-wage industries where labor demand is less elastic.

Quiz 20: Income Inequality and Poverty