Mary Ellen lives in a large city and earns $100,000 a year. Her sister, Molly, lives in a small rural community and earns only $20,000 a year
Based on this information, can you conclude that Mary Ellen is better off than her sister? Explain your answer.
From this information it is impossible to determine who is better off. Mary Ellen's income is higher than Molly's, but Molly may be willing to sacrifice income so that she doesn't have to deal with the problems associated with living in a large city. Income is an imperfect measure of well-being.
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A change in the price of one good cannot leave utility unchanged unless the price change is accompanies by a change in income.
Answer the following statement true (T) or false (F)
Average per-capita GDP in the richest, most prosperous economies is ________ times that of the average in the ________ economies
A) 95, low (poorest) income B) 95, lower-middle income C) 73, lower-middle income D) 44, low (poorest) income E) 69, low (poorest) income
Most, but not all, athletic apparel sold in the United States is imported from other nations. If the price of athletic apparel increases, the GDP deflator will
a. increase less than will the consumer price index. b. increase more than will the consumer price index. c. not increase, but the consumer price index will increase. d. increase, but the consumer price index will not increase.
The former communist countries of eastern Europe and the Soviet Union
A. have a better track record in environment protection than market economies. B. have a dismal environmental record. C. epitomize the ability of planned economies to protect the environment. D. have no water pollution problems.