Suppose Fred's marginal utility of an extra dollar of income is 56, and Sally's is 34 . If a dollar is taken from
a. Sally and given to Fred, the economy's total utility will rise by 22 units
b. Fred and given to Sally, the economy's total utility will rise by 22 units
c. Sally and given to Fred, the economy's total utility will rise by 34 units
d. Sally and given to Fred, the economy's total utility will rise by 56 units
e. Fred and given to Sally, the economy's total utility will rise by 34 units
A
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Which of the following BEST describes macroeconomics?
A) It is not a social science because its predictions cannot be tested. B) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. C) It examines how the choices that individuals affect governments. D) It studies the choices that individuals and businesses make when coping with scarcity. E) Proving causation is never a problem for macroeconomics.
The larger the value of the marginal propensity to save (MPS)
A) the larger is the value of the marginal propensity to consumption (MPC). B) the smaller is the value of the multiplier. C) the larger is the value of the multiplier. D) the larger is the value of autonomous consumption.
An improvement in technology that increases the marginal product will shift the demand for labor curve to the right
a. True b. False Indicate whether the statement is true or false
Poor people, who receive income assistance from the government, often do not work because
a. they face very high implicit marginal tax rates. b. they are usually not physically able to work. c. they have no desire for additional money. d. the government forces them to stay at home and take care of their children.