. Consider two communities. In one community,ten families have incomes of $100,000 each and tenfamilies have incomes of $20,000 each. In the othercommunity, ten families have incomes of $250,000each and ten families have incomes of $25,000 each.a. In which community is the distribution of incomemore unequal? In which community is theproblem of poverty likely to be worse?b. Which distribution of income would Rawls prefer?Explain.c. Which distribution of income do you prefer?Explain.d. Why might someone have the oppositepreference?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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. Consider two communities. In one community,
ten families have incomes of $100,000 each and ten
families have incomes of $20,000 each. In the other
community, ten families have incomes of $250,000
each and ten families have incomes of $25,000 each.
a. In which community is the distribution of income
more unequal? In which community is the
problem of poverty likely to be worse?
b. Which distribution of income would Rawls prefer?
Explain.
c. Which distribution of income do you prefer?
Explain.
d. Why might someone have the opposite
preference?

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