In the class lecture notes, we discussed the utilitarian justification for redistribution of income using an example with Peter and Paul.  Under the assumptions of that model, society’s total number of utils rises when income is transferred from a rich person to a poor person because:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe rich have lower marginal utility of income than the poor.bgovernment transfers are more efficient than private charities.cthere is more social harmony when income levels are equalized.dthe poor have lower marginal utility of income than the rich.eGNP rises when wealth is more evenly spread out across the population.

In class, we discussed the “veil of ignorance” justification for some redistribution of income. Under the veil of ignorance notion, it has been suggested that citizens might be in favor of some redistribution from the rich to the poor becauseSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe poor are often ignorant about how to escape poverty on their own.bthe rich have higher marginal utility of income than the poor.cthat would be their preferred policy if they had to form a viewpoint before knowing what kind of family they would be born into (i.e., their situation in life).dthe rich are sometimes uninformed about how to efficiently donate money where it will be most valued.

According to Rawls, all social values (opportunity, liberty, income, wealth, etc.) are to be distributed equally unless an unequal distribution is Question 1 options: to everyone's advantage. beneficial to the majority. consistent with utility. deserved.

Deciding what the distribution of income should be is an example of positive economicsGroup of answer choicesTrueFalse

Which of the following is false?a. Everyone who has reached a higher economic social status deserves it because they worked hard to get it.b. The difference between the rich and the poor largely results from the ways of structuring the economy e.g., a capitalist economic system.c. The characteristics of capitalism provide all with an equal opportunity for upward social mobility.d. Inheritance is largely responsible for the higher economic status of many who have less ability than those who may be in a lower-class character.e. A & C

By introducing which of the following policies could a government make the distribution of material well-being in a society more equal?Group of answer choicesImposing an income tax where the average amount of tax per dollar of income increases with income.Providing income support to people who are unemployed (and who do not have any other source of income).Providing a uniform level of free healthcare to all members of society.All of a], b] and c].