What Is the Maximin Principle

question 2

Multiple Choice

What is the maximin principle?

• A) that government should minimize benefits that the maximum income earners receive from society, allowing others to become better-off
• B) that government should maximize benefits that the minimum income earners receive from society, making them as well-off as possible
• C) that the least well-off people in society should be made as well-off as anyone else in society
• D) that the most well-off people in society should have a maximum level of wealth

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Definitions:

Amortize

To gradually write off the initial cost of an intangible asset over its useful life, reflecting the consumption of the asset's value.

Capital Assets

Long-term tangible or intangible assets owned or controlled by a business that are used to produce goods or services and are not intended for sale in the regular course of business.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is represented by the equity value.

Cost Method

An accounting approach whereby investments are recorded at their original purchase cost, without adjusting for changes in fair value, except for impairments.