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- Income Inequalityeconomics-mcqs › income-inequality
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
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.
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.
More Income Inequality MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes the Benazir Benefit Income Scheme?
- 2.Which category of tax does VAT best represent?
- 3.When a tax can be transferred, what determines the actual burden of the tax?
- 4.What does tax incidence refer to?
- 5.What does a progressive income tax system imply about the tax rate for individuals with higher earnings?