Discussion :: Statement and Assumption
-
Statement: Equality of income throughout a community is the essential condition for maximising the total utility which the total income available could confer on the members of that community.
Assumptions:
- If extra income were taken from the rich and given to the poor, the total utility experienced by the community would increase.
- Equal pay for equal work.
|
A.
Only assumption I is implicit
|
|
B.
Only assumption II is implicit
|
|
C.
Either I or II is implicit
|
|
D.
Neither I nor II is implicit
|
|
E.
Both I and II are implicit
|
Whatsapp
Facebook
Answer : Option A
Explanation :
The total utility can be maximised by equality of income throughout the community, i.e., by giving extra income from the rich to the poor. So, I is implicit. Also, II pertains to economic right and is not concerned with equality of income throughout the community. So, it is not implicit.
Be The First To Comment