Discussion :: Statement and Assumption
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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.
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A.
Only assumption I is implicit |
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B.
Only assumption II is implicit |
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C.
Either I or II is implicit |
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D.
Neither I nor II is implicit |
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E.
Both I and II are implicit |
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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.
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