On what economic principle is the concept of utilitarian justice developed? Explain
What will be an ideal response?
The concept of utilitarian justice is based on the idea of diminishing marginal utility of income. This implies that transferring income from the wealthy to the poor will increase total utility.
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Which of the following is most likely to reduce an individual's current spending?
A) Paying back a loan in the future B) Depositing money in a bank today C) Borrowing money today D) Withdrawing money in the future
The market supply function is P = 10 + Q and the market demand function is P = 70 - 2Q. What is the change in consumer surplus associated with a minimum floor price of $30?
A) Zero B) -$100 C) -$30 D) -$55
The total amount of consumer surplus and producer surplus is at its maximum when
A) consumers and producers are allowed to trade at the market clearing price. B) the government imposes a price floor that is higher than the market clearing price. C) the government imposes a price ceiling that is lower than the market clearing price. D) free market exchanges do not exist.
If the total cost function is TC = Q3 - 6Q2 + 14Q + 75, would you expect the bottom of the ATC curve to be greater than, less than, or equal to 3?
What will be an ideal response?