Question

1) Which school of thought puts the least emphasis on the redistribution of income to enhance the goal of equity/equality?

a. utilitarian justice

b. Rawlsian justice

c. socialism

d. libertarian justice

2) A road is normally available to anyone. (Do not consider toll roads.) For the most part my use of the road does not affect your use of the road although we know that is not really true at rush hour when the roads become congested. This sounds most like a

a. private good.

b. public good.

c. club good.

d. common good.

Use the following information for the next two questions: the U.S. can produce 3 tons of potatoes per day or 4 tons of wheat per day. Ireland can produce 4 tons of potatoes per day or one ton of wheat.

3) The U.S. has an absolute advantage in producing

a. potatoes.

b. wheat.

c. both.

d. neither.

4) The U.S. has a comparative advantage in producing

a. potatoes.

b. wheat.

c. both.

d. neither.

Answer 1

1) Libertarian justice

2) common good (rival good but non excludable)

3) US has an absolute advantage in producing wheat (can produce more wheat in comparison to Ireland)

4) US has a comparative advantage in production of wheat (lower opportunity cost (1 ton of wheat) = 3/4 potatoes , Ireland = 4 potatoes)