According to utilitarian justice, the redistribution of income from the rich to the poor causes
A. the marginal utility of both the rich and the poor to decrease.
B. an increase in total utility because of the law of decreasing marginal utility.
C. the rich to sacrifice a lot and the poor to gain a little.
D. the marginal utility of both the rich and the poor to increase.
Answer: B
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Which of the following statements about junk (high-risk) bonds is true?
A) They never outperform treasury bonds since they're too risky. B) The price of junk bonds increase as their perceived risk increases. C) They tend to perform best during recessions. D) One can profit by owning them if market perceptions of their risk decline.
The government redistributes income to the poor, primarily through
a. progressive taxes. b. transfer payments. c. government purchases. d. both a and b.