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One Reason for Rejecting the Argument That Inequality of Income

Question 15

Multiple Choice

One reason for rejecting the argument that inequality of income lessens total consumer satisfaction (because an extra dollar given to a poor man provides him with more extra satisfaction than the loss of a dollar taken away from a rich man) is that


A) the rich and the poor have the same capacity to gain enjoyment from income.
B) interpersonal comparisons of satisfaction do not rest on scientific grounds.
C) poor people spend their incomes on consumption, whereas the rich invest theirs in capital.
D) arguments based on considerations of positive economics cannot be used to make ethical judgments.
E) the rich are more deserving than the poor.

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