Multiple Choice
Suppose that Teresa Thomas obtains 12 units of utility from the last dollar of income she receives, while Richard Voote obtains 7 units of utility from the last dollar of his income. Both have identical marginal-utility-of-income-curves. Those who:
A) favor an equal distribution of income would advocate redistributing income from Richard to Teresa.
B) favor an equal distribution of income would advocate redistributing income from Teresa to Richard.
C) favor an equal distribution of income would be content with the distribution of income between Teresa and Richard.
D) do not favor an equal distribution of income would argue that any redistribution between Teresa and Richard would increase total utility.
Correct Answer:
Verified
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