Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 20 - Part VI - Income Inequality and Poverty - Questions for Review - Page 430: 5

Answer

A utilitarian would allow as much income inequality to maximize the total utility of the society. In other words, a utilitarian would allow for a minimal amount of income inequality since utilitarians would aim for a more equal distribution of income. (However, this would only be partially obtained since the utilitarian would realize the redistribution of income hurts incentives.)

Work Step by Step

A liberal would focus on the person who is the worst off in the society and try to equalize incomes so that the worst off person has a 'just' income. A libertarian would not focus on the redistribution of income as long as the ability (or process) of getting an income is fair.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.