If all individuals have identical utility functions and the marginal utility of income decreases as income increases, transferring income ________ will ________ total utility.
A. from the rich to the poor; increase
B. from the poor to the rich; not change
C. from the rich to the poor; not change
D. from the rich to the poor; decrease
Answer: A
Economics
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A commercial society, as described by Adam Smith, develops when
A) maximizing income becomes the ultimate objective for most people. B) more people are employed in service industries than in agriculture and manufacturing. C) private interest replaces the public interest. D) the division of labor extends itself throughout the society. E) traditional values give way to commercial values.
Economics
Along the vertical axis of the production function we typically measure
a. revenue. b. the marginal product of the input. c. the quantity of input. d. the quantity of output.
Economics