Question

A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives. To maximize total utility, therefore, the government
a.) would never tax labor income.
b.) must always achieve a fully egalitarian society.
c.) enacts policies that only benefit the middle class.
d.) stops short of a fully egalitarian society.

Answer 1

Answer:

D

Explanation:

The utilitarian government must stop short of a fully egalitarian society in order to maximise total utility