The fair rules approach to fairness requires
A)that consumer surplus equal producer surplus.
B)income transfers from rich to poor.
C)property rights and voluntary exchange.
D)that marginal cost equal marginal benefit.
E)that consumer surplus exceed producer surplus because there are more consumers than producers.

Question

Quizplus · Accepted Answer

The fair rules approach to fairness is based on the principles of property rights and voluntary exchange. This approach emphasizes that in a free market system, individuals and firms have the right to own property and engage in voluntary exchange of goods and services based on mutually agreed-upon terms. This approach does not require income transfers or equality of consumer and producer surplus, and it does not prioritize one group (consumers or producers) over the other. Instead, it seeks to create a level playing field for all participants by enforcing fair rules and allowing market forces to determine outcomes.

The Fair Rules Approach to Fairness Requires