Suppose Tracy obtains 7 units of utility from the last dollar of income she receives and Brent obtains 7 units of utility from his last dollar of income.Assume both Brent and Tracy 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:

Question

Quizplus · Accepted Answer

Since both Brent and Tracy have the same capacity to derive utility from income and obtain the same amount of utility from their last dollar of income, an equal distribution of income has already been achieved. Therefore, those who favor an equal distribution of income would be content with this distribution of income between Tracy and Brent and would not advocate any redistribution. Option C is the correct answer.

Suppose Tracy Obtains 7 Units of Utility from the Last