One Reason for Rejecting the Argument That Inequality of Income

question 12

Multiple Choice

One reason for rejecting the argument that inequality of income lessens total consumer satisfaction (because an extra dollar given to a poor man provides him with more extra satisfaction than the loss of a dollar taken away from a rich man) is that

• A) the rich and the poor have the same capacity to gain enjoyment from income.
• B) interpersonal comparisons of satisfaction do not rest on scientific grounds.
• C) poor people spend their incomes on consumption, whereas the rich invest theirs in capital.
• D) arguments based on considerations of positive economics cannot be used to make ethical judgments.
• E) the rich are more deserving than the poor.

---

Definitions:

Violations

Acts or instances of breaking or disregarding laws, rules, or agreements.

Progressive Discipline

A disciplinary system that uses a range of responses to employee infractions, from minor to severe, in an attempt to correct behavior before termination.

Department Managers

Individuals responsible for overseeing the operations, personnel, and budget of a specific department within an organization.

Punitive Purpose

Actions or penalties intended to punish an individual or entity, often used in legal and disciplinary contexts to deter undesirable behavior.