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Economics 101: Utilitarianism | SterlingTerrell.net

Economics 101: Utilitarianism


What is utilitarianism?

Utilitarianism is a political or moral theory that values increasing overall utility above other values.

This means Policy 2 is always preferred to Policy 1.

Policy 1
Group 1 - Utility of 50, increases to 75.
Group 2 - Utility of 200, increases to 225.
Policy 1 Total Utility = 300

Policy 2
Group 1 - Utility of 50, increases to 51.
Group 2 - Utility of 200, increases to 250.
Policy 2 Total Utility = 301