Interpersonal Transactions
1. Communal sharing
2. Authority ranking
3. Equality matching
4. Market pricing
Common Law - What society deems is fair or just
What to Consider in Making Decisions
1. What do we want to change?
2. Why?
3. Can we change it?
4. What are the pros and cons of the current system?
5. Whom does it affect?
6. What will be the outcome?
All voluntary transactions are at least marginally effecient
Equality does not equal equity
Vertical Equity - Burden on those most able to bear it
Horizontal Equity - Burden equally distributed
GDP - Gross Domestic Product; the value of FINAL goods and services produced within a country within a given period of time (final to avoid double-counting)
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