The table below reflects the levels of total utility received from income for each of four members of a society.

a.
Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.
Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with. )If the government is interested in distributing income in a way that maximizes aggregate total utility,how should it distribute the $19 of income?
c.
Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

Question

The table below reflects the levels of total utility received from income for each of four members of a society.
  
a.
Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.
Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with. )If the government is interested in distributing income in a way that maximizes aggregate total utility,how should it distribute the $19 of income?
c.
Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

Quizplus · Accepted Answer

The Answer of The table below reflects the levels of total utility received from income for each of four members of a society.
  
a.
Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.
Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with. )If the government is interested in distributing income in a way that maximizes aggregate total utility,how should it distribute the $19 of income?
c.
Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

The Table Below Reflects the Levels of Total Utility Received