Which of the following statements could be used to justify a government redistributing income from the rich to the poor?
a. Marginal utilities of the rich and the poor would be equal after redistribution.
b. Only the rich can appreciate the benefits associated with higher income levels.
c. The total utility from income is greater for the poor than for the rich.
d. Allowing for interpersonal comparisons of utility, it seems reasonable that the marginal utility of an additional dollar is lower for the rich than for the poor.
e. The poor have a lower total utility of income than do the rich.
D
You might also like to view...
There is no good basis for dividing federal and state regulatory jurisdictions
Indicate whether the statement is true or false
Suppose the central bank implements a monetary expansion that is not fully anticipated by financial markets. Given this information, we would expect
A) stock prices to rise. B) stock prices to fall. C) stock prices to remain unchanged. D) an ambiguous effect on stock prices. E) none of the above