The utilitarian justification for redistributing income is based on the assumption of diminishing marginal utility
a. True
b. False
Indicate whether the statement is true or false
True
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Real standards of living can only go up with positive economic growth.
Answer the following statement(s) true (T) or false (F)
Suppose the economy is producing below the natural rate of output and the government is suffering from large budget deficits. To deal with the deficit problem, suppose the government takes a policy action to reduce the size of the deficits
This policy action will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run, everything else held constant. A) an increase; an increase B) a decrease; a decrease C) a decrease; an increase D) an increase; a decrease
When a firm or economy is operating efficiently, it is operating
a. outside its production possibilities frontier. b. inside its production possibilities frontier. c. on its production possibilities frontier. d. at the intersection of the production possibilities frontier and the vertical axis. e. at the intersection of the production possibilities frontier and the horizontal axis.
Elasticities are used to measure responses to a change in:
A. the price of a related good. B. the price of a good. C. income. D. All of these are true.