When Everyone Is Pursuing Self-Direction, the Greater Good Is Ultimately

question 82

Multiple Choice

When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest. This is proposed by the:

• A) utilitarian approach
• B) individualism approach
• C) moral-justice approach
• D) justice approach
• E) social responsibility

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Definitions:

Economic Profits

The extra amount businesses earn after subtracting all of their costs, including opportunity costs.

Long Run

A period in which all factors of production and costs are variable, allowing for all adjustments to be made within a market or economy.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on quality, brand, and price.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, leading to a loss of total societal welfare.