A Utilitarian Government Has to Balance the Gains from Greater

question 140

Multiple Choice

A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives. To maximize total utility, therefore, the government

• A)would never tax labor income.
• B)must always achieve a fully egalitarian society.
• C)enacts policies that only benefit the middle class.
• D)stops short of a fully egalitarian society.

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Definitions:

Self-Improvement

refers to the process of seeking to better oneself through activities that improve knowledge, skills, and personal development.

Self-Management

The ability to control one's own actions, manage time and resources effectively, and make independent decisions.

Social Context

The environment of people, cultures, and institutions in which individuals live and operate, which significantly influences their behaviors, beliefs, and interactions.

Resource Inputs

The materials, labor, and capital that are utilized in the production process of goods or services.