5 Suppose there are two possible income distributions in a society of 10 people. In the first...

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5 Suppose there are two possible income distributions in a society of 10 people. In the first distribution, nine people have incomes of $60 000 and one person has an income of

$20 000. In the second distribution, all 10 people have incomes of $50 000.

a If the society had the first income distribution, what would be the utilitarian argument for redistributing income?

b Which income distribution would Rawls consider more equitable? Explain.

c Which income distribution would Nozick consider more equitable? Explain.

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Principles Of Microeconomics

ISBN: 125206

8th Edition

Authors: Joshua Gans, Stephen King, Martin Byford, N Gregory Mankiw

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