Final answer:
Nagel believes that public institutions focus on outcome-based morality because the consequences of actions, and their impact on the general welfare, are pivotal in determining an action's moral value, a view that aligns with consequentialist principles such as utilitarianism.
Step-by-step explanation:
According to Nagel, the morality that applies to public institutions or public policy is primarily outcome-based because actions are judged moral or immoral based on their consequences. In the context of public policy, an action is typically seen as right if it produces the greatest benefit or minimizes harm for the most significant number of people. This approach is rooted in the consequentialist ethical framework, which holds that the righteousness of an action depends on its outcomes. Consequentialism, particularly utilitarianism, suggests that the moral value of actions is determined by their overall impact on collective welfare. Intention may inform private morality, but in public policy, the focus is on measurable outcomes that affect the community at large. Hence, public institutions operate under ethical considerations that prioritize the results of policies over the moral quality of intentions behind them.