John Rawls, who developed the way of thinking called liberalism, argued that government policies should be aimed at maximizing the sum of utility of everyone in society

If the desired amount demanded is greater than the desired amount supplied, then:

a. Business inventories could be rising or falling, depending on how they are valued. b. Business inventories are falling. c. Increases in residential construction are usually the reason, because they are measured at the end of each period. d. It is impossible for demand to be greater than supply, because supply limits demand. e. None are correct.

Total surplus in a market will increase when the government

a. imposes a binding price floor or a binding price ceiling on that market. b. imposes a tax on that market. c. Both a and b are correct. d. Neither a nor b is correct.