Solved

Refer to the Above Diagrams That Show Identical Marginal Utility

Question 109

Multiple Choice

  Refer to the above diagrams that show identical marginal utility from income curves for Singer and Catalano.If this initial distribution of $15,000 to Singer and $5,000 to Catalano is altered in favor of greater equality,it may be argued that: A)  the combined total utility of the two consumers will decline because Catalano has a greater capacity to derive utility from income than does Singer. B)  incentives to produce will be weakened and total income will decrease. C)  incentives to produce will be enhanced and total income will increase. D)  the combined total utility of the two consumers will decline because Singer has a greater capacity to derive utility from income than does Catalano. Refer to the above diagrams that show identical marginal utility from income curves for Singer and Catalano.If this initial distribution of $15,000 to Singer and $5,000 to Catalano is altered in favor of greater equality,it may be argued that:


A) the combined total utility of the two consumers will decline because Catalano has a greater capacity to derive utility from income than does Singer.
B) incentives to produce will be weakened and total income will decrease.
C) incentives to produce will be enhanced and total income will increase.
D) the combined total utility of the two consumers will decline because Singer has a greater capacity to derive utility from income than does Catalano.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents