Maximizing total economic surplus as the first social goal and equity as the second means that
A) when equity is considered,the surplus available is as large as possible.
B) society is unconcerned with the problems of the underprivileged.
C) society will become more materialistic.
D) income inequality will rise.
E) the rich get richer and the poor get poorer.

Question

Quizplus · Accepted Answer

Maximizing total economic surplus as the first social goal means that society wants to achieve the maximum overall benefit, but equity as the second social goal ensures that this benefit is distributed fairly among all members of society. Therefore, when equity is considered, the surplus available is as large as possible while also ensuring that everyone benefits, including the underprivileged. This does not necessarily mean that society will become more materialistic, and it does not necessarily lead to a rise in income inequality or the rich getting richer while the poor get poorer.

Maximizing Total Economic Surplus as the First Social Goal and Equity