A society consists of three individuals: Larry, Margaret, and Nina. In terms of income and utility, Larry is currently best-off, Margaret ranks in the middle, and Nina is worst-off. Which of the following statements is correct?
a. Utilitarianism suggests that government policies should strive to maximize the sum of all three individuals' utility.
b. Liberalism suggests that government policies should strive to maximize the sum of Larry's utility and Nina's utility.
c. Libertarianism suggests that government policies should strive to make Nina better off at the cost of Larry and Margaret.
d. Utilitarianism suggests that the government policies should strive to make Nina better off than Margaret.
a
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An example of economies of scale in the provision of financial services is
A) investing in a diversified collection of assets. B) providing depositors with a variety of savings certificates. C) hiring more support staff so that customers don't have to wait so long for assistance. D) spreading the cost of writing a standardized contract over many borrowers.
Refer to Figure 17-10. Consumer surplus with the tariff is
a. A.
b. A + B.
c. A + C + G.
d. A + B + C + D +E + F.