Suppose a Society Consists of Only Two People, John and Jane

question 248

Multiple Choice

Suppose a society consists of only two people, John and Jane. A utilitarian would say that the proper role of government in this society is to

• A)equalize the incomes of John and Jane.
• B)equalize John's utility and Jane's utility.
• C)equalize John's marginal utility and Jane's marginal utility.
• D)maximize the sum of John's utility and Jane's utility.

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Definitions:

Machine Hours

Machine Hours represent a measure of the amount of time a machine is operated, used in costing, and operational efficiency analysis.

Over/Underapplied Overhead

The difference between the actual overhead costs incurred and the overhead costs allocated to production, indicating whether the allocated amount was too high or too low.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Net Income

Net income, or net profit, is the total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.