The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then
A) wealth distribution would be more equal.
B) wealth distribution would be unchanged.
C) wealth distribution would be more unequal.
D) the Lorenz curve would shift rightward.
Question 2
One problem with the utilitarian principle is that it ignores
A) increasing marginal costs.
B) decreasing marginal benefits.
C) the costs of making income transfers.
D) poor people.
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