Multiple Choice
Suppose Rita obtains 10 units of utility from the last dollar of income she receives and Nigel obtains 6 units of utility from his last dollar of income. Assume both Nigel and Rita have the same capacity to derive utility from income with identical marginal-utility-of-income-curves. Those who favor an equal distribution of income would:
A) advocate redistributing income from Nigel to Rita.
B) advocate redistributing income from Rita to Nigel.
C) be content with this distribution of income between Rita and Nigel.
D) argue that any redistribution of income between them would increase total utility.
Correct Answer:
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