Can Someone Help With Economics?
I need help with these 3 questions, please.
1) As a result of the tradeoff between income equality and incentives to work, an optimal redistribution policy
A. will rarely fall short of a full egalitarian society.
B. is consistent only with transfers to the middle class.
C. always falls short of a full egalitarian society.
D. can never be funded through taxes on wage income.
2) The amount of a commodity that an individual is consuming
A. is affected only by prices.
B. affects the rate at which he or she is willing to trade.
C. is affected only by income.
D. won’t affect the marginal rate of substitution.
3) The notion of utility is fundamental to utilitarianism and described the
A. method whereby wealth is stored as flat currency.
B. method by which society chooses to allocate resources.
C. optimal distribution of wealth in society.
D. level of satisfaction derived from a person’s circumstances.
Filed under: Commodity Trading
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1) C. always falls short of a full egalitarian society.
With a fully egalitarian society, there will be no incentive to enter difficult career paths, and within each career, there would be no incentive to work hard.
2) B. affects the rate at which he or she is willing to trade.
3) D. level of satisfaction derived from a person’s circumstances.
Utilitarianism deals with the optimal distribution of wealth in society, but utility describes the level of satisfaction a person gains from the goods they consume.