Question

The big trade-off is between efficiency and equity.

True

False

The current approximate debt-to-GDP ratio is (2018):

		105%
		379%
		234%
		77%

Milton Friedman argued:

		drugs should be legalized.
		drugs should be illegal.
		that drugs were destroying the U.S. economy and they should be stopped at all costs.
		that drug laws should be strengthened.

The fallacy of composition is

		an expression that means "other things being equal."
		a statement about the way the economic world ought to be.
		the error of reasoning that a first event causes a second event because the first event occurred before the second event.
		the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.

Answer 1

1. True

Whenever we promote equity in the society then the efficiency declines.

2. In US the debt to GDP ratio in the year 2018 is 105%(Approximately).

This ratio determines the sovereign debt to the total output of the country.

3. Milton Friedman argued

Drugs should be legalized.

'On the ethical ground, the government has no right to tell the people not to use drug.'

'In economics terms, the prohibition of drug imposes cost on society that far exceed benefits.'

4. It occurs when it is considered that what is True, or good, for parts is also true, or good, for the whole.

Last one is correct.

For example in a multiplex one person can have a better view by watching the movie when he is standing, but what if everyone stands in that case noone will be having a better view.

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