The table below reflects the levels of total utility received from income for each of four members of a society.
$$\begin{array} { l l l l l }
\text { Income } & \text { Peter } & \text { Paul } & \text { Mary } & \text { Jane } \
\hline \$ 1 & 15 & 32 & 20 & 16 \
\$ 2 & 29 & 61 & 38 & 30 \
\$ 3 & 42 & 87 &54& 42 \
\$ 4 & 54 & 110 & 54 & 52 \
\$ 5 & 65 & 130 & 68 & 60 \
\$ 7 & 75 & 147 & 80 & 66 \
\$ 8 & 84 & 161 & 90 & 70 \
\$ 2 & 92 & 172 & 98 & 72
\end{array}$$
a.Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with.) If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income?
c.Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

Question

The table below reflects the levels of total utility received from income for each of four members of a society.
 $$\begin{array} { l l l l l } 
\text { Income } & \text { Peter } & \text { Paul } & \text { Mary } & \text { Jane } \
\hline \$ 1 & 15 & 32 & 20 & 16 \
\$ 2 & 29 & 61 & 38 & 30 \
\$ 3 & 42 & 87 &54& 42 \
\$ 4 & 54 & 110 & 54 & 52 \
\$ 5 & 65 & 130 & 68 & 60 \
\$ 7 & 75 & 147 & 80 & 66 \
\$ 8 & 84 & 161 & 90 & 70 \
\$ 2 & 92 & 172 & 98 & 72
\end{array}$$ 
a.Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with.) If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income?
c.Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

Quizplus · Accepted Answer

The Answer of The table below reflects the levels of total utility received from income for each of four members of a society.
 $$\begin{array} { l l l l l } 
\text { Income } & \text { Peter } & \text { Paul } & \text { Mary } & \text { Jane } \
\hline \$ 1 & 15 & 32 & 20 & 16 \
\$ 2 & 29 & 61 & 38 & 30 \
\$ 3 & 42 & 87 &54& 42 \
\$ 4 & 54 & 110 & 54 & 52 \
\$ 5 & 65 & 130 & 68 & 60 \
\$ 7 & 75 & 147 & 80 & 66 \
\$ 8 & 84 & 161 & 90 & 70 \
\$ 2 & 92 & 172 & 98 & 72
\end{array}$$ 
a.Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with.) If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income?
c.Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

The Table Below Reflects the Levels of Total Utility Received