Why is income and wealth typically used as a measure of the "distribution of economic well being" rather than utility
What will be an ideal response?
Because utility is neither directly observable nor measurable, most policy discussions deal with the distributions of income and wealth as imperfect substitutes for the concept of "the distribution of well-being."
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Betsy's utility depending from her consumption of coffee is shown in the table above. Betsy's marginal utility from the 3rd cup of coffee per day is
A) 30. B) 85. C) 90. D) 10.
In the short run, a firm will
A) not produce if its total revenue does not cover its total cost. B) produce and incur an economic loss if its total revenue covers its total variable cost but not its total cost. C) produce and break even if its total revenue covers its total fixed cost but not its total variable cost. D) produce and earn an economic profit if its total revenue is equal to its total cost.
Okun's law relates ________ to ________
A) inflation; unemployment B) inflation; output C) output; unemployment D) output; employment
A concert-goer who had been willing to pay up to $150 for a ticket, but who pays a scalper $125 for one, experiences a consumer surplus of $25
Indicate whether the statement is true or false