quiz 4 pt3

Question 1

Utilitarianism

Answer 1

the view that government should redistribute income to maximize the total utility of EVERYONE in society.

Question 2

The utilitarian case for redistributing income is based on the assumption of ________________

Answer 2

diminishing marginal utility.

Question 3

Liberalism

Public policy should be based on the _____________, which seeks to maximize the utility or well-being of the worst-off person in society.

Answer 3

the view that income should be redistributed in such a way so that the poorest in society always receive an adequate level of income as a form of social insurance.

maximin criterion

Question 4

Libertarianism

Answer 4

the view that government should enforce individual rights to ensure that everyone has the same opportunity to use his or her talents to achieve success, but should NOT redistribute income.

Question 5

Policies to Reduce Poverty (4)

Answer 5

Minimum-wage laws
Welfare
Negative income tax
In-kind transfers

Question 6

_________is a broad term that encompasses various government programs that supplement the incomes of the needy.

Answer 6

Welfare

Question 7

collects tax revenue from high-income households and gives transfers to low-income households.

Answer 7

negative income tax

Question 8

Antipoverty Programs and Work Incentives

Answer 8

Many policies aimed at helping the poor can have the unintended effect of discouraging the poor from escaping poverty on their own.