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.

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that the additional satisfaction from each additional dollar of income decreases as income increases. Taking a dollar from Ms. Spring, who has a higher income, and giving it to Mr. Fall, who has a lower income, will increase society's total utility because the additional satisfaction that Mr. Fall gets from the dollar will be greater than the loss of satisfaction that Ms. Spring experiences.

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