Economics Assignment Sample
Q1:
Answer :Consequentialist utilitarianism:
Bentham and Mill developed consequentialist utilitarianism, a moral philosophy of ethics. It is a component of consequentialism, which assesses the rightness or wrongness of actions according to their outcomes. In the context of social policy guidance, utilitarianism provides a framework for assessing policies based on their overall influence on society well-being. Arguments for Utilitarianism in Social Policy:
Measurement of objective:
The theory Objective measurement theory emphasizes rational and evidence-based decision-making. According to the principle, the proposed policy can be reviewed using a cost-benefit analysis and altered if it fails to optimize the general satisfaction of society. This flexibility enables governments to alter policies to meet changing societal needs.
Impartiality:
The concept is fair and impartial since it focuses on the good of society. The idea implies that everyone's satisfaction is valued equally, avoiding the possibility of enacting policies that favor only a small elite minority.
Maximization on well-being and social welfare:
The approach focuses on ensuring societal happiness and harmony. According to the principle, each policy should be established with the real-world impact of its decisions on people's lives in mind.
Arguments against Utilitarianism in social policy:
Difficulty in measuring happiness:
The "Felicific Calculus" developed by Bentham, while theoretically intriguing, poses considerable practical challenges. Happiness is subjective and difficult to measure. What constitutes happiness varies by person and country, and there is no universally acknowledged criterion for assessing pleasure (The Pursuit of Happiness, 2020).
The problem of distribution:
John Rawls' "A Theory of Justice" is an effective critique of utilitarianism (Fremantle, 2016). His research demonstrates that utilitarianism compromises minorities' interests for the sake of the majority, a direct breach of the fundamental premise of justice.
The role of rights:
The central dispute concerns the relationship between utilitarianism and individual rights. Some philosophers argue that rights just maximize utility, whilst others believe that rights have intrinsic value.
The scope of moral concern:
According to Jacobson (2008), utilitarianism challenges the morality of animals and future generations. (Jacobson, 2008).
In conclusion, utilitarianism offers a valuable concept for social policy development but comes with significant limitations. While its emphasis on impartiality and societal happiness is commendable, difficulty in measuring happiness and neglecting individual rights raises serious ethical concerns.
Q1: Explain the principles that account for the downward slope of the demand curve and the upward slope of the supply curve.
Answer :The downward slope of the demand curve:
The downward trend of the demand curve indicates the inverse relationship between price and quantity demanded. Such action is motivated by the law of declining marginal value. The law states that as a consumer consumes more of a good, the additional satisfaction (marginal utility) obtained from each unit diminishes. As a result, consumers are prepared to pay less per additional unit consumed. Such behavior reduces demand as the price rises (Arora, 2021).
The downward slope of the demand curve may also be attributed to the income effect, which asserts that when the price of goods falls, customers' purchasing power rises.
The upward slope of the supply curve:
The increasing slope of the supply curve indicates an increase in the supply of an item. It displays the direct relationship between price and quantity supplied and is founded on the law of increasing costs. As the cost of items rises, producers will face higher manufacturing costs per unit. To remain profitable in such a circumstance (profit motivation), the commodity price will rise. The profit incentive also drives the rising supply slope, since higher prices encourage manufacturers to increase supply.
To summarize, the downward slope of the demand curve is shaped by the falling marginal utility, income, and substitution effect, whereas the upward slope of the supply curve is shaped by the law of increasing costs and profit incentives.