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Income Equality and Efficiency
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Income Equality and Efficiency
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16. Income Inequality and Poverty / Income Equality and Efficiency / Problem 4
Problem 4
What is the likely effect on total utility if income is redistributed from a wealthy individual to a poorer individual?
A
Total utility is likely to decrease because the wealthy individual loses more utility.
B
Total utility is unaffected by income redistribution.
C
Total utility remains unchanged because the total amount of money is constant.
D
Total utility is likely to increase because the poorer individual gains more utility from each additional dollar.
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