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Income Inequalityeconomics-mcqs › income-inequality
Published
1 Jun 2019
Last updated
28 May 2026

Browse all Income Inequality MCQs

According to utilitarian principles, how should the government design policies to maximize overall societal welfare?

Multiple choice question for Income Inequality. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Utilitarianism advocates for policies that increase total happiness in society. Because the marginal utility of income decreases as wealth increases, shifting resources from richer individuals to poorer ones results in a net gain in overall utility. Thus, redistributing income from the rich to the poor enhances total societal welfare more effectively than other approaches.

Practice related questions from the same subject.

  1. 1.Which of the following best describes the Benazir Benefit Income Scheme?
  2. 2.Which category of tax does VAT best represent?
  3. 3.When a tax can be transferred, what determines the actual burden of the tax?
  4. 4.What does tax incidence refer to?
  5. 5.What does a progressive income tax system imply about the tax rate for individuals with higher earnings?

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