Suppose Rita obtains 10 units of utility from the last dollar of income received by her, and Joseph obtains 6 units of utility from the last dollar of his income. Assume both Joseph and Rita have the same capacity to derive utility from income. Those who favor an equal distribution of income would

Question

Quizplus · Accepted Answer

Advocating for an equal distribution of income would imply that both individuals receive equal levels of utility per dollar of income. Since Rita obtains a higher level of utility per dollar of income compared to Joseph, it would be more equitable to redistribute income from Joseph to Rita in order to achieve a more equal distribution of income and utility.

Suppose Rita Obtains 10 Units of Utility from the Last