Question 1

One of the biggest arguments against legalizing organ trade is that the people selling their organs for money would be exploited. Wikipedia claims that the "average reported price around the world that a donor receives for a kidney is $5,000, while the average price paid on the black market to receive the kidney is $150,000." Which group (if any) would you say is more exploited as a result of organ trade-those who sell kidneys on the legal or illegal market? Explain. Who is better off, and who is worse off as a result of kidney trading?

Accepted Answer

The answer of One of the biggest arguments against legalizing...

Question 2

Robert Nozick's entitlement theory is a pro-free-trade theory.

Accepted Answer

Nozick's entitlement theory supports the idea that individuals have the right to acquire and transfer property through voluntary exchange, which aligns with free trade principles.

Question 3

Based on your reading of the text, briefly list some of the objections that exist against standard economic reasoning.

Accepted Answer

The answer of Based on your reading of the text,...

Question 4

Robert Nozick would be concerned about the vast amount of wealth accumulated by Lady Gaga, most likely suggesting that part of her wealth be redistributed to the less fortunate.

Accepted Answer

Robert Nozick was a libertarian philosopher who believed in minimal government intervention and protection of individual property rights. He would not advocate for the redistribution of wealth, even if it is accumulated by individuals like Lady Gaga.

Question 5

Income inequality is not a problem if it results from voluntary transactions in the marketplace, according to Nozick's entitlement theory.

Accepted Answer

According to Nozick's entitlement theory, as long as income inequality results from voluntary transactions in the marketplace, it is not considered a problem because individuals are entitled to the fruits of their labor and property can only be transferred through voluntary means. Nozick argues that any attempts to redistribute wealth or promote equality through government intervention would violate individual rights and lead to injustice.

Question 6

The practical limit of income redistribution is incentives that affect how much the wealthy earn.

Accepted Answer

Income redistribution policies, such as progressive taxation and welfare programs, aim to transfer wealth from the wealthy to the less well-off. However, if income redistribution policies are too aggressive, they may reduce the incentive for the wealthy to work hard and achieve high incomes, which can ultimately harm economic growth. Therefore, there is a practical limit to how much income can be redistributed before it begins to negatively affect incentives and economic growth.

Question 7

The concept of utility could refer to "happiness" or "satisfaction."

Accepted Answer

Utility is the amount of satisfaction or happiness that a consumer derives from consuming a good or service. Therefore, the concept of utility does refer to happiness or satisfaction.

Question 8

Consider the market for human kidneys. Using supply and demand, graphically illustrate how the price of $0 is affecting the legal market for kidneys. Assume that a small number of kidneys are donated for free each year.

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The answer of Consider the market for human kidneys. Using...

Question 9

Suppose you were advocating Larry Summers's view that pollution should be exported to less-developed countries. Explain how this could lead to increased economic growth in both sets of countries.

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The answer of Suppose you were advocating Larry Summers's view...

Question 10

Robert Nozick's entitlement theory of justice is also known as a libertarian theory of justice.

Accepted Answer

Robert Nozick's entitlement theory of justice is often referred to as a libertarian theory of justice because it emphasizes individual ownership rights and limited government intervention in economic transactions.

Question 11

Think of an example other than the market for human kidneys that is illegal because it is believed to be exploitative. Make two arguments: first, this market is exploitative and should be illegal; second, from an economic point of view, the market does not exploit and should be legal.

Accepted Answer

The answer of Think of an example other than the...

Question 12

Nozick argues that voluntary peaceful trades that lead to income inequality are to be condemned as unjust actions.

Accepted Answer

Nozick argues that voluntary peaceful trades, even if they lead to income inequality, are not necessarily unjust. He believes that individuals have a right to the fruits of their labor and that the government should not interfere with these voluntary exchanges.

Question 13

Robert Nozick advocated the importance of assessing the distribution of income in a country in order to decide whether an economic system is just or not.

Accepted Answer

The answer of Robert Nozick advocated the importance of assessing...

Question 14

In economics, there is a concept called Pareto optimality. This is the concept whereby parties trade until neither one can be made better-off without making the other worse-off. At that point, both parties are said to have reached a state that is Pareto optimal. Do you think the market for kidneys enjoys Pareto optimality? Why or why not?

Accepted Answer

The answer of In economics, there is a concept called...

Question 15

Utilitarians favor redistribution schemes that maximize total utility in society.

Accepted Answer

Utilitarians believe in maximizing overall happiness or utility in society, which may involve redistributing resources to benefit the majority.

Question 16

Utilitarians are not concerned that transferring wealth to the poor reduces an economy's output.

Accepted Answer

Utilitarians believe that maximizing overall happiness or well-being is the ultimate goal, and thus, they would be concerned if transferring wealth to the poor reduces an economy's output as it may harm the overall well-being of society.

Question 17

When it comes to redistribution, a utilitarian approach tries to determine which people can generate the greatest income with additional utility.

Accepted Answer

The answer of When it comes to redistribution, a utilitarian...

Question 18

List the six practical problems of economic reasoning that need to be examined.

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The answer of List the six practical problems of economic...

Question 19

Consider a regulation prohibiting non-law enforcement people from carrying firearms. Could this be an example of meddlesome preferences? Explain why or why not.

Accepted Answer

The answer of Consider a regulation prohibiting non-law enforcement people...

Question 20

Robert Nozick's entitlement theory would support an entrepreneur such as Bill Gates who has gotten very rich by creating things that people value.

Accepted Answer

Robert Nozick's entitlement theory states that individuals are entitled to the fruits of their labor and talents as long as they acquire it through legitimate means such as voluntary exchange, without violating the rights of others. Bill Gates, as an entrepreneur who created products that people value and acquired his wealth through voluntary exchanges, would be seen as entitled to his wealth according to Nozick's theory.

Quiz 21: Economics, Ethics, and Public Policy