The Table Below Reflects the Levels of Total Utility Received

question 211

Essay

The table below reflects the levels of total utility received from income for each of four members of a society.
a.Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.Assume that the government has $19 to allocate among the four members of society. (Assume that no one has any income to start with.) If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income?
c.Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

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Definitions:

Impaired Thermoregulation

A condition where the body cannot maintain its normal temperature due to disrupted heat production or loss processes.

Impaired Cognition

A reduction in an individual's ability to think, concentrate, formulate ideas, reason, and remember, which may affect daily functioning.

Occupational Exposure

The potential encounter with hazardous substances, conditions, or practices at the workplace that could pose health risks to workers.

Hypothermic

A condition where the body temperature drops below the normal range, leading to a potentially dangerous state that requires immediate medical attention.