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.
Only assumption I is implicit
Only assumption II is implicit
Either I or II is implicit
Neither I nor II is implicit
Explanation:
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.
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.