Consider a society with 4 members: Justin, Andrew, Jagmeet and Elizabeth. The following table outlines the levels of total utility received from each dollar of income for each members of the society. Assume that the society has the following income distribution: Justin: $3 Andrew: $7 Jagmeet: $5 Elizabeth: $3 a. Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer. b. Next, assume no one has any income to start with (income = $0 for everyone). Assume that the government has $19 to allocate among the four members of society. If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income? c. Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer
Q49. Consider a society with 4 members: Justin, Andrew, Jagmeet and Elizabeth. The following table outlines the levels of total utility received from each dollar of income for each members of the society.
Assume that the society has the following income distribution:
Justin: $3
Andrew: $7
Jagmeet: $5
Elizabeth: $3
a. Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b. Next, assume no one has any income to start with (income = $0 for everyone). Assume that the government has $19 to allocate among the four members of society. If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income?
c. Does the table above describe a situation characterized by diminishing
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