Question 1

Ms. Spring currently earns $100,000 a year, while her junior partner, Mr. Fall, earns $55,000 a year. From the perspective of a utilitarian, if both of their incomes are subject to diminishing marginal utility, taking a dollar from Ms. Spring and giving it to Mr. Fall will

Accepted Answer

Diminishing marginal utility means that the additional satisfaction from each additional dollar of income decreases as income increases. Taking a dollar from Ms. Spring, who has a higher income, and giving it to Mr. Fall, who has a lower income, will increase society's total utility because the additional satisfaction that Mr. Fall gets from the dollar will be greater than the loss of satisfaction that Ms. Spring experiences.

Question 2

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

Accepted Answer

Liberalism emphasizes individual freedom and equality, and thus suggests that government policies should strive to increase Ulyana's utility to promote greater equality among individuals. Utilitarianism would aim to maximize total societal utility, which could involve sacrificing Ulyana's well-being if it leads to greater overall utility. Libertarianism prioritizes individual liberty and limited government intervention, so it is unlikely to suggest any specific policy action to improve the situation of any individual. Making everyone equally well off, as suggested in choice D, goes against the principles of individual freedom and personal responsibility that are fundamental to libertarianism. Therefore, choice B is the best option.

Question 3

The maximin criterion for government policies is associated with

Accepted Answer

The maximin criterion is associated with liberalism, particularly with the philosopher John Rawls, who argued that social and economic inequalities should be arranged to benefit the least advantaged members of society.

Question 4

"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?

Accepted Answer

This assumption comes from the utilitarian philosophy, which seeks to maximize overall happiness or satisfaction. The theory is that a dollar means more to a poor person because it can alleviate immediate basic needs like food or shelter, while a rich person has already satisfied those needs and may use the extra dollar for trivial or luxurious purposes. Utilitarianism values distributive justice and aims to reduce inequality for the sake of overall happiness.

Question 5

Which group (or groups) would be the most upset by wide variation in the income distribution?

Accepted Answer

Utilitarians and liberals are concerned with fairness and equality, so they would be upset by wide variations in income distribution. Utilitarians focus on maximizing overall happiness, while liberals emphasize equal opportunities and reducing inequalities.

Question 6

Liberalism is the political philosophy espoused by

Accepted Answer

The answer of Liberalism is the political philosophy espoused by
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Question 7

Suppose that Jamal is moving to a state where personal incomes are distributed randomly. If Jamal believes in liberalism, he would prefer

Accepted Answer

As a liberal, Jamal would prefer an income distribution that is relatively equal as liberalism emphasizes on social equality and equal opportunity for all.

Question 8

Liberalism suggests that public policies should aim to

Accepted Answer

Liberalism, particularly as articulated by philosopher John Rawls, suggests that public policies should aim to maximize the well-being of the worst-off person in society, a principle known as the "difference principle."

Question 9

Raising the welfare of the worst-off person in society is an important goal of which political philosophy?

Accepted Answer

Liberalism, particularly in the form of John Rawls' theory of justice, emphasizes improving the welfare of the least advantaged members of society.

Question 10

The philosopher John Rawls argued that

Accepted Answer

Rawls proposed the theory of justice that includes the original position, where individuals determine principles of justice in a hypothetical situation without knowing their own characteristics such as their social status, income, or talents. Rawls argued that in this scenario, people would choose an economic distribution system that is fair and promotes equal opportunity, and that a more equal distribution of income would be preferred because it maximizes the well-being of society as a whole. Therefore, A is the best choice as it aligns with Rawls' beliefs.

Question 11

According to the doctrine of liberalism, principles of justice are the result of

Accepted Answer

According to the doctrine of liberalism, principles of justice are the result of fair agreement and bargain. This means that individuals are free to enter into mutual agreements and contracts with one another, and the resulting principles of justice are based on these voluntary and mutually beneficial arrangements. This is in contrast to command-and-control policies, which are imposed by those in power, or domination of the powerful by the weak, which is a violation of individual rights. The idea of workers owning the factors of production is more closely associated with socialism or communism, rather than liberalism.

Question 12

Which of the following statements illustrates diminishing marginal utility?

Accepted Answer

Diminishing marginal utility suggests that as a person receives more of a good or income, the additional satisfaction from each additional unit decreases. Thus, an extra dollar is more valuable to a poor person than to a rich person.

Question 13

"The government should choose policies deemed to be just, as evaluated by an impartial observer behind a 'veil of ignorance.'" This statement is most closely associated with which political philosophy?

Accepted Answer

This statement is closely associated with John Rawls' theory of justice, which is rooted in liberalism. Rawls proposed that in order to determine a just society, we should imagine ourselves behind a "veil of ignorance" where we do not know our place in society, our social status, or our natural talents. From this impartial perspective, we would choose policies that benefit all members of society equally, rather than just the privileged few.

Question 14

The maximin criterion is attributed to which political philosophy?

Accepted Answer

The maximin criterion is associated with liberal political philosophy, which prioritizes the welfare of the least advantaged members of society. It suggests choosing the option that maximizes the minimum possible outcome, in order to protect those who are most vulnerable. This approach can be seen as a way of balancing the principles of equality and liberty, which are central to liberal ideology.

Question 15

Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that

Accepted Answer

A utilitarian would argue for redistributing income to increase total utility, as the marginal utility of income is higher for those with less income. Taking $1 from Mitchell and giving it to Phil would likely increase total utility because Phil has less income and would gain more utility from the additional dollar than Mitchell would lose.

Question 16

Liberalism aims to raise the welfare of the worst-off person in society. This rule is called the

Accepted Answer

The maximin criterion states that decisions should be made based on the maximum possible payoff for the worst outcome. In the context of liberalism, this means that policies should be aimed at increasing the welfare of the worst-off person in society. Therefore, the best choice is option D, maximin criterion.

Question 17

Diminishing marginal utility suggests that

Accepted Answer

Diminishing marginal utility suggests that as consumption of a good or service increases, the satisfaction or utility gained from each additional unit decreases. Therefore, the poor, who have less disposable income, tend to receive more satisfaction from the last dollar spent compared to the rich who have more disposable income and may experience diminishing satisfaction from each additional dollar spent.

Question 18

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Accepted Answer

The concept of diminishing marginal utility suggests that as individuals consume more of a good or service, the additional satisfaction or utility they derive from each additional unit consumed decreases. Utilitarians believe that resources should be allocated in such a way as to maximize overall social welfare, which can be achieved by redistributing income to those who have a lower marginal utility of wealth (i.e. those who derive more satisfaction from an additional dollar of income) than others. Therefore, C is the best choice as it directly relates to the utilitarian rationale for diminishing marginal utility.

Question 19

Suppose society consists of four individuals: Andy, Bill, Carl, and David. Andy has $20,000 of income, Bill has $40,000 of income, Carl has $60,000 of income, and David has $80,000 of income. A utilitarian would argue that

Accepted Answer

A utilitarian would argue for redistributing income to increase total utility, as the marginal utility of income decreases with higher income. Taking $1 from Carl and giving it to Andy would likely increase total utility because Andy, having less income, would derive more utility from the additional dollar than Carl would lose.

Question 20

Liberalism is founded on a premise that behind a "veil of ignorance,"

Accepted Answer

The premise of the "veil of ignorance" implies that people would agree to just rules for the reallocation of income if they did not know their own position in society. This aligns with the idea of redistributive policies, which seek to reduce economic inequality. Therefore, the correct choice is C.

Quiz 20: Income Inequality and Poverty