Bill Gates is the world's second richest person whose net worth is estimated at $54 billion. The idea that Bill Gates marginal utility for his 54 billionth dollar is less than someone else's 1000th dollar is the
A) "Utilitarian" principle.
B) "Big Tradeoff" principle.
C) "Make the Poorest as Well Off as Possible" principle.
D) "Equity" principle.

Question

Quizplus · Accepted Answer

The "Utilitarian" principle suggests that resources should be distributed in a way that maximizes overall happiness or utility. Since the marginal utility of money decreases as one has more of it, the 54 billionth dollar is less valuable to Bill Gates than the 1000th dollar is to someone with much less wealth.

Bill Gates Is the World's Second Richest Person Whose Net