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Questions and Answers
Why is supporting consumer sovereignty NOT a moral imperative?
Why is supporting consumer sovereignty NOT a moral imperative?
- God rewards wisdom with wealth, so we should be partial towards wealthy producers
- God calls us to be impartial towards all, so we should favor neither producers or consumers under any circumstance (correct)
- God requires us to provide justice only to the poor, so we need to be partial to poor consumers
- God helps those who help themselves, so we should listen to the producer or consumer who makes the best argument for why they deserve an upper hand in trade
Why do cartels struggle to maintain their cartel status for long periods of time?
Why do cartels struggle to maintain their cartel status for long periods of time?
- Because governments always side with consumers, to create more supply and competition between firms and substitute goods
- Because consumers do not respond to price changes for their luxury goods
- Because it is unprofitable to maintain their cooperation
- Because it is likely that some member(s) of the cartel will cheat against the others (correct)
