A Utilitarian Government Must

question 312

Multiple Choice

A utilitarian government must

• A)calculate the utility of each individual in society.
• B)avoid enacting any policies that redistribute income from the rich to the poor.
• C)balance the gains from greater equality against the losses from distorted incentives.
• D)pursue policies that do not affect the middle class.

---

Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competitive practices based on product differentiation.

Market Structures

Refers to the organization and characteristics of different markets, varying by the number of firms, type of products, and level of competition.

Product Variety

The assortment or range of different goods or services offered by a seller or available in a market.

Pure Competition

Also known as perfect competition, it is a market structure characterized by a large number of buyers and sellers, homogenous products, and free entry and exit from the market.