The philosopher John Rawls argued that if people could make arrangements about how society would be organized before they were born that one of the principles that we would agree upon is that social and economic inequalities are to be arranged so
that they are to be of the greatest benefit to the least-advantaged members of society. What economic strategy sounds akin to this idea? Explain.
In game theory, a maximin strategy is a strategy chosen to maximize the minimum gain that can be earned. The idea is that since people are ignorant of what their state in the society will be that they will opt for a strategy that will benefit those at the bottom of the economic latter the greatest since it is very possible that any one person could find him or herself there.
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When a recession is triggered by a(n) ________ in autonomous expenditure, and as the economy turns the corner into ________, real GDP exceeds aggregate planned expenditure and unplanned inventories ________
A) increase; recession; increase B) decrease; expansion; decrease C) decrease; expansion; increase D) decrease; recession; decrease E) decrease; recession; increase
Higher inflation makes relative prices
a. more variable, making it more likely that resources will be allocated to their best use. b. more variable, making it less likely that resources will be allocated to their best use. c. less variable, making it more likely that resources will be allocated to their best use. d. less variable, making it less likely that resources will be allocated to their best use.