Final answer:
Utilitarianism is the theory that holds that actions that generate greater happiness are judged to be better than actions that lead to unhappiness. It aims to maximize happiness or utility for the greatest number of people.
Step-by-step explanation:
The theory that holds that actions that generate greater happiness are judged to be better than actions that lead to unhappiness is called utilitarianism. Utilitarianism is a consequentialist theory that aims to maximize happiness or utility for the greatest number of people. It argues that the right action is the one that produces the most net happiness or utility. Utilitarians believe that actions should be evaluated based on their consequences and the amount of happiness they generate.