Q180
Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer : 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 increase. II. Equal pay for equal work.
A.
Only assumption I is implicit
AnswerB.
Only assumption II is implicit
C.
Either I or II is implicit
D.
Neither I nor II is implicit
E.
Both I and II are implicit
Answer: Option A
Solution
Answer: Option A
Solution:
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.