A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives. To maximize total utility, therefore, the government
a. would never tax labor income.
b. must always achieve a fully egalitarian society.
c. enacts policies that only benefit the middle class.
d. stops short of a fully egalitarian society.
d
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Which of the following is true?
A. People tend to enjoy the process of buying a car more when the process involves difficult choices. B. Budgeting your income will often result in less total spending. C. High prices and rebates on cars simply irritate the consumer and make him feel treated like a fool. D. People prefer the toll ways where they throw in some change every dozen miles or so to a toll road that has one payment at the end of the trip.
The increase in total cost that results from producing one more unit of output is the marginal cost.
a. true b. false
Suppose that a haircut will give Dawn 2,000 units of utility and cost her $40, whereas a manicure costs $25 and yields 1,000 units of utility. Most likely Dawn should:
A. choose the haircut because she will receive 50 units of utility per dollar compared with 45 units of utility per dollar for the nails. B. be indifferent between the two choices. C. choose the haircut because each unit of utility will cost her $0.02 compared with $0.025 for the nails. D. choose the nails because she will obtain 50 units of utility per dollar compared with 40 units of utility per dollar for the haircut.
The dividends that stockholders receive are:
A. paid before all other obligations of the company are met. B. distributions from profits. C. always equal to the average amount of interest paid to a bond holder, adjusting for the value of the holdings. D. fixed by contract and paid annually.