Suppose a Society Consists of Only Two People, John and Jane

question 248

Multiple Choice

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.

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Definitions:

Net Worth

The total value of an individual's or organization's assets minus liabilities, representing the actual value of ownership equity.

Operating Costs

Expenses associated with the day-to-day functioning of a business, including costs for rent, utilities, payroll, and raw materials.

Discretionary Income

The portion of a person's income remaining for investment, savings, or expenditures after deducting taxes and essential living costs such as housing and food.

Personal Income

Refers to the total earnings received by individuals, including wages, salaries, bonuses, and income from investments.