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Statement : Equality of income throughout a community is the essential condition for maximizing the total utility which the total income available could confer on the members of that community. Assumptions : I. If extra income were taken from the rich and given to the poor, the total utility experienced by the community would increases. II. Equal pay for equal work. |
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Answer: Option A Explanation: The Total utility can be maximized 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. |
In each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.
Give answer
(A) If only assumption I is implicit
(B) If only assumption II is implicit
(C) If either I or II is implicit
(D) If neither I nor II is implicit
(E) If both I and II are implicit.
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