Which of the following is the most valid argument against the theory that redistributing income would increase society’s total utility?
a. It is just an assumption that people are alike in how they experience diminishing
marginal utility from increasing income.
b. Studies have shown that happiness not at all correlated to income levels.
c. The main reason that people are able to command high incomes is that they have
worked harder than low-income people.
d. Studies have shown that income redistribution destabilizes society.
a. It is just an assumption that people are alike in how they experience diminishing
marginal utility from increasing income.
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In an open economy in which only two goods are produced and possibly traded, we would find that
a. production occurs where the production possibility curve is tangent to a line with the slope equal to the ratio of the world relative prices. b. production occurs where an indifference curve is tangent to the production possibilities curve. c. consumption occurs where an indifference curve is tangent to the production possibilities curve. d. consumption occurs where the production possibilities curve is tangent to a line with a slope equal to the ratio of the world relative prices.
Use the following graph of the demand for coffee to answer the question below.
Refer to the three demand curves for coffee. Which of the following would shift the demand for coffee from D1 to D3?
A. an increase in income if coffee is a normal good B. an expected decrease in the price of coffee in the future C. a decrease in the price of coffee D. an increase in the number of buyers of coffee
The concept of net domestic investment refers to ________.
A. the difference between the market value and book value of outstanding capital stock B. the amount of machinery and equipment used up in producing the GDP in a specific year C. gross domestic investment less net exports D. total investment less the amount of investment goods used up in producing the year's output
Which of the following is a similarity between an English auction and a Dutch auction?
A) The second-highest bidder wins the good in both auctions. B) The bidder who values the good the most wins it in both auctions. C) The bidders submit their bids privately at the same time in case of both auctions. D) In both auctions, the bidders submit their bids privately at different times during the bidding process.