Adam makes $25,000 per year and Bob makes $45,000 a year, and they both have the same marginal benefit curve. According to the utilitarian view, if a dollar is transferred from Bob to Adam, then
A) the change in Adam's marginal benefit plus the change in Bob's marginal benefit is negative.
B) Adam's marginal benefit increases by more than Bob's marginal benefit decreases.
C) the change in Adam's marginal benefit plus the change in Bob's marginal benefit equals zero.
D) Adam's marginal benefit decreases by more than Bob's marginal benefit increases.

Question

Quizplus · Accepted Answer

According to the utilitarian view, transferring a dollar from a wealthier person to a less wealthy person increases overall utility because the marginal benefit of a dollar is higher for the less wealthy person (Adam) than for the wealthier person (Bob).

Adam Makes $25,000 Per Year and Bob Makes $45,000 a Year