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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.

Answer & Solution
Correct Answer: Option A
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.
Examveda
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