Asked Nov 19, 2019

Explain the following.

1.people care about the fairness of economic outcomes.

2. People can be inconsistent over time.

3. Sometimes people not only work to full fill their self interest.


Expert Answer

Step 1

People care about the fairness in economic outcomes because people offer their labor power in the economy for the production process in order to earn the wages for their labor power. When there is no fairness in economic outcomes of an activity, people will not be willing to participate in the economic activity. Thus, when the economy has no economic fairness in the outcome, the process of production and economic growth and development of the economy would be very difficult. Also, people only values the economic system which has a fairness and equality between the economic outcomes.

Step 2

The economy would have changes due to the changes in the business cycle and other impacts of the economic activities. When time changes the inflation, money supply as well as the government of the economy would change. Thus, people would also chan...

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