Economics Marginal Utility Questions
The concept of marginal utility of taxation refers to the change in satisfaction or well-being that individuals experience as a result of an additional unit of taxation. It is based on the principle that as individuals' income or wealth increases, the utility or satisfaction derived from each additional dollar of income decreases. Therefore, the marginal utility of taxation suggests that the more a person is taxed, the greater the reduction in their overall well-being or utility.