Economics Marginal Utility Questions
The concept of marginal utility of income inequality refers to the idea that as income increases, the additional satisfaction or utility derived from each additional unit of income decreases. In other words, the more income a person has, the less each additional dollar of income contributes to their overall well-being or happiness. This concept is often used to explain why redistributive policies, such as progressive taxation or social welfare programs, are advocated to reduce income inequality and improve overall societal welfare.