1. Shaw and Barry distinguish two different forms of utilitarianism. What are these two forms. Briefly describe each and use examples.

Act and Rule Utilitarianism are two forms referenced by Shaw and Barry.

Act utilitarianism states that we must ask ourselves what the consequences of a particular act in a particular situation will be for all those affected. This is the most basic form of utilitarianism. If the outcome brings more good than any other action, then that action is the right one.

Rule utilitarianism states that the utilitarian standard should be applied not to the individual action but to the moral codes as a whole. The only rule is to maximize happiness and every action should be judged according to how well it lives up to this rule.

2. What do economists mean by the "declining marginal utility of money"?

The declining marginal utility of money means that successive additions to one’s income produce less happiness or welfare than did earlier additions. This means that as one continues to add goods and/or services, those things will begin to net less happiness.

3. Robert Nozick presents his entitlement theory as a function of three basic principles. What are these three basic principles?

Nozick’s three basic principles are as follows:

1. A person who acquires a holding in accordance with the principle of justice in acquisition is entitled to the holding

2. A person who acquires a holding a accordance with the principle of justice transfer, from someone else entitled to the holding, is entitled to the holding.

3. No one is entitled to a holding except by (repeated) application of 1 and 2.

4. Two main features of John Rawls's theory of distributive justice are particularly important. What are these two features? Describe them.

The two features of Rawls’s theory are as follows: