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Explain How a "Leaky Bucket" Can Be Used to Illustrate

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Essay

Explain how a "leaky bucket" can be used to illustrate the utilitarian argument that governments should not attempt to completely equalize individual incomes.


Definitions:

Consumer Surplus

The variance between the amount consumers are ready to pay for a good or service compared to the actual price they pay.

International Trade

the exchange of goods and services across international borders or territories.

Autarky

An economic system where a region or country is self-sufficient and does not engage in international trade.

Consumer Surplus

The discrepancy between what buyers are willing to offer for an item or service and the price they actually pay.

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