Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 20 - Part VI - Income Inequality and Poverty - Quick Check Multiple Choice - Page 431: 3

Answer

C) each person’s income, after taxes and transfers, reflects his marginal product

Work Step by Step

A utilitarian believes that the redistribution of income from the rich to the poor is worthwhile as long as each person’s income, after taxes and transfers, reflects his marginal product. In other words, so long as a person's income matches the true, added value a person gives to a company or to society, then a utilitarians would be okay with redistribution.
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