A Utilitarian Government Has to Balance the Gains from Greater

question 140

Multiple Choice

A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives. To maximize total utility, therefore, the government

• A)would never tax labor income.
• B)must always achieve a fully egalitarian society.
• C)enacts policies that only benefit the middle class.
• D)stops short of a fully egalitarian society.

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