Card 1 of 23
How does the diminishing marginal utility of income justify redistribution?
A
An extra £1 provides less additional welfare to a low-income household than to a high-income household.
B
An extra £1 provides more additional welfare to a low-income household than to a high-income household.
C
An extra £1 provides more additional welfare to a high-income household than to a low-income household.
D
An extra £1 provides equal additional welfare to a low-income household and to a high-income household.
Card 1 of 23
Income distribution and welfare Flashcards
23 flashcards on OCR A Level Economics Income distribution and welfare: the key terms, economic models and case studies you need to recall for Component 01, Component 02 and Component 03.