Which distributive theory proposes distribution based on market principles?

• A. UTILITARIAN
• B. LIBERTARIAN
• C. EGALITARIAN
• D. RESTORATIVE

Answer: (B)

The distribution based on market principles is a libertarian view. In this approach, resources are allocated mainly through voluntary exchange in a free market, with property rights and individual liberty taking center stage. The idea is that prices, bargaining, and choice determine who gets what, while the government plays a limited role—primarily protecting rights and enforcing contracts rather than redistributing wealth. Because outcomes flow from individuals’ decisions and abilities to participate in the market, the emphasis is on freedom of choice and minimal state intervention.

Utilitarianism would assess distributions by their overall welfare impact, potentially justifying redistribution if it increases total happiness. Egalitarian theory seeks to make outcomes more equal, often supporting redistribution to reduce disparities. Restorative justice focuses on repairing harms and restoring relationships rather than using market mechanisms to allocate resources.