A Society Consists of Three Individuals: Aniyah, Justin, and Jordan

question 68

Multiple Choice

A society consists of three individuals: Aniyah, Justin, and Jordan. In terms of income and utility, Aniyah is currently best-off, Justin ranks in the middle, and Jordan is worst-off. Which of the following statements is correct?

• A)Utilitarianism suggests that government policies should strive to maximize the sum of all three individuals' utility.
• B)Liberalism suggests that government policies should strive to maximize the sum of Aniyah's utility and Jordan's utility.
• C)Libertarianism suggests that government policies should strive to make Jordan better off at the cost of Aniyah and Justin.
• D)Utilitarianism suggests that the government policies should strive to make Jordan better off than Justin.

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Definitions:

Profit Margin

A financial metric that measures the amount of net income generated as a percentage of revenue, indicating how effectively a company can convert sales into net profits.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, indicating how much money a company returns to shareholders versus reinvesting in the business.

Financial Planning Models

Tools or software used for projecting future financial results and for strategic financial planning, often in the form of spreadsheets or specialized software.

Financial Relationships

Financial relationships refer to the connections between different financial variables, metrics, and performance indicators that help in analyzing and evaluating the financial health of an entity.