(prelude)
My higher income will make me happier in the short term. In the long term I will grow used to it and my happiness will fall back to its earlier level. Therefore, there is no point in earning a higher income.
(a)[12]
Explain the Law of Diminishing Marginal Utility and discuss whether it supports the idea that higher incomes raise happiness.
(b)[13]
Discuss how governments might secure a more equal distribution of income.