Ms Spring Currently Earns $100,000 a Year, While Her Junior

question 352

Multiple Choice

Ms. Spring currently earns $100,000 a year, while her junior partner, Mr. Fall, earns $55,000 a year. From the perspective of a utilitarian, if both of their incomes are subject to diminishing marginal utility, taking a dollar from Ms. Spring and giving it to Mr. Fall will

• A)increase society's total utility.
• B)lower Ms. Spring's marginal utility of income.
• C)increase Mr. Fall's marginal utility of income.
• D)lower society's total utility.

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Definitions:

Social Cost

The total cost to society as a whole from an event, activity, or policy, including both direct and indirect costs.

Social Distribution

The manner in which societal resources, opportunities, and burdens are spread across different groups and individuals.

Environmental Risk

Environmental risk involves the potential negative effects on the natural environment and human health due to pollution, natural disasters, climate change, and other environmental factors.

Acid Rain

Rainfall made sufficiently acidic by atmospheric pollution that it causes environmental harm, typically to forests and lakes.