MCQ Hive stays free thanks to ads. Please disable your ad blocker for this site so content and features keep working.
Economics Mcqs
Q
Utilitarianism suggests that the government should choose policies that maximize the total utility of everyone in society by ?
AA. Redistributing income from rich to poor because this is what the members of society would choose to do if they were behind a veil of ignorance
BB. Redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor
CC. Allowing each individual to maximize their own utility without interference from the government
DRedIstributing income from rich to poor because this would maximize the well-being of the worst-off person in society
Correct Answer:
B. B. Redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor
