Bill Gates is the world's second richest person whose net worth is estimated at $54 billion. The idea that Bill Gates marginal utility for his 54 billionth dollar is less than someone else's 1000^th dollar is the A) "Utilitarian" principle. B) "Big Tradeoff" principle. C) "Make the Poorest as Well Off as Possible" principle. D) "Equity" principle.

Question

Quizplus · Accepted Answer

The concept that the marginal utility of money decreases as wealth increases is the basis of the utilitarian principle, which suggests that resources should be distributed to maximize the overall happiness or utility of society. In this case, it would suggest that redistributing some of Gates' wealth to others who have a higher marginal utility for the money would lead to a more optimal outcome for society as a whole.

Bill Gates Is the World's Second Richest Person Whose Net