3. Consider two communities. In one community, ten families have incomes of $100

Question

3. Consider two communities. In one community, ten families have incomes of $100,000 each and ten families have incomes of $20,000 each. In the other community, ten families have incomes of $200,000 each ten families have incomes of $22,000 each.

a. In which community is the distribution of income more unequal? In which community is the problem of poverty likely to be worse?

b. Which distribution of income would Rawls prefer? Explain.

c. Which distribution of income do you prefer? Explain.

d. Why might someone have the opposite preference?

Explanation / Answer

a) In the community in which 10 families have income $200000 and other ten have $22,000 income is the community where distribution of income is more unequal because when you calculate the range(maximum - minimum), it is the highest in this community.

b) Rawl would prefer the second community as according to the second principle of Rawl's theory inequality is allowed ifit benefits the worse off people. So in this case worse off people also get higher income.

c) I would prefer the latter community's distribution as both groups are better off in that case.

d) The opposite preference would be to reduce the extent of inequality in the community

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