Suppose Rita Obtains 10 Units of Utility from the Last

question 144

Multiple Choice

Suppose Rita obtains 10 units of utility from the last dollar of income she receives and David obtains 6 units of utility from his last dollar of income.Assume both David and Rita 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:

• A) advocate redistributing income from David to Rita.
• B) advocate redistributing income from Rita to David.
• C) be content with this distribution of income between Rita and David.
• D) argue that any redistribution of income between them would increase total utility.

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Definitions:

Reporting Currency

The currency in which a corporation's financial statements are expressed, as determined by the company's management.