Suppose a society consists of only two people, John and Jane. A utilitarian would say that the proper role of government in this society is to
a. equalize the incomes of John and Jane.
b. equalize John's utility and Jane's utility.
c. equalize John's marginal utility and Jane's marginal utility.
d. maximize the sum of John's utility and Jane's utility.
d
You might also like to view...
The accompanying table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15. Number of Car Washes Per MonthTotal Monthly Benefit from Car Washes0$01$202$363$484$565$60 What is the marginal benefit of the 3rd car wash each month?
A. $4 B. $12 C. $48 D. $16
Other things being equal, the economy's aggregate demand curve shows that
A. a change in the general price level causes the curve to shift. B. real Gross Domestic Product (GDP) and the price level are not related. C. a change in the general price level causes a change in the quantity of final goods and services purchased. D. as the price level falls, total planned expenditures fall as well.
If a price floor of $23 were placed on the market in the graph shown, which area represents the surplus that is transferred?
A. B B. C C. B + C + D D. B + C
In the figure above, if the interest rate is 6 percent
A) there is a $0.1 trillion excess quantity of money and the interest rate will rise. B) there is a $0.1 trillion excess quantity of money and the interest rate will fall. C) the money market is in equilibrium and the interest rate will remain constant. D) there is a $0.1 trillion excess demand for money and the interest rate will rise.