Understanding Economic Inequality: Schools of Thought

Which of the following is NOT one of the three main schools of thought on economic inequality discussed in the video?

• Utilitarianism

• Liberalism

• Libertarianism

• Capitalism

What is the primary goal of utilitarianism in terms of economic policy?

• Maximizing the wealth of the richest

• Achieving absolute equality

• Maximizing total utility in society

• Minimizing government intervention

In utilitarianism, what is the term used to describe the concept that additional income has less impact on happiness as income increases?

• Diminishing marginal utility of income

• Income elasticity

• Marginal utility

• Diminishing returns

Which economic system in the U.S. is an example of utilitarian redistribution?

• Free market system

• Federal income tax system

• Gold standard

• Barter system

Who first proposed the concept of liberalism as discussed in the video?

• Karl Marx

• Adam Smith

• Milton Friedman

• John Rawls

What is the maximin criterion in liberalism?

• Maximizing the utility of the wealthiest

• Maximizing the utility of the worst-off

• Minimizing government spending

• Maximizing total economic output

What is the primary focus of libertarianism in terms of government intervention?

• Redistributing wealth

• Punishing crimes and enforcing agreements

• Maximizing social welfare

• Controlling market prices

According to libertarianism, when should the government intervene in the market economy?

• When income distribution is unfairly achieved

• To provide social welfare

• To ensure equal income for all

• To maximize total utility

What is the main question that all three schools of thought attempt to answer?

• How to maximize government revenue

• How to approach economic inequality

• How to eliminate poverty

• How to increase GDP

Where can students explore these topics more in depth?

• At a local library

• On the Chegg platform

• In a government office

• At a university