Which of the following statements could be used to justify a government redistributing income from the rich to the poor?
A) Marginal utilities of the rich and the poor would be equal after redistribution.
B) Only the rich can appreciate the benefits associated with higher income levels.
C) The total utility from income is greater for the poor than for the rich.
D) Allowing for interpersonal comparisons of utility, it seems reasonable that the marginal utility of an additional dollar is lower for the rich than for the poor.
E) The poor have a lower total utility of income than do the rich.
Correct Answer:
Verified
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