Name the economic principle that says that government policy is good if it benefits many people in the society

Question

This concept falls under Public Finance and it is designed to show the desirability of government policy when applied. It describes government policy as favourable if it positively affects the generality of the people, otherwise such policy is said to be unfavourable. Economists always advise the continuation of those policies that bring about positive changes to the generality of the people.

Answer 1

There is 'beneficent' or 'magnanimous' to describe generally-beneficial policies.

Utilitarianism (or consequentialism) inherently seeks the greatest good, although there's debate as to whether that means greatest good period or greatest good for the most people (the two can conflict; for instance in a society that values bigotry when the perspective of the considerer is that bigotry is a negative value).