Describe the role that diminishing marginal utility plays in the utilitarian argument or redistribution of income?...
Describe the role that diminishing marginal utility plays in the utilitarian argument or redistribution of income?
Please explain in less than 5 sentences. Thanks
Homework Answers
Diminishing marginal utility marginal utility has an important role in redistribution of income. Marginal utility of money is higher for a poor man than a rich man. This is because if a person is having only a very less amount of money with him, the marginal utility derived from each unit of money will be greater. While if a person is having more money, the utility derived from each unit of money will be less. This law is having a role in taxation by government on the basis of ability to pay. When the rich people are taxed by government, some amount of money is taken away from them which improve the utility derived from the remaining amount of money. The money taxed from rich people will spend for the welfare of the poor by the government. The law of diminishing marginal utility had an important role in determining the ability of people to pay taxes.
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Describe the role that diminishing marginal utility plays in the
utilitarian argument or redistribution of income?...
Question 7 According to utilitarian justice, the redistribution of income from the rich to the poor...
Question 7 According to utilitarian justice, the redistribution of income from the rich to the poor causes the rich to sacrifice a lot and the poor to gain a little. the marginal utility of both the rich and the poor to increase. the marginal utility of both the rich and the poor to decrease. an increase in total utility because of the law of decreasing marginal utility.
Recall the text’s definition of diminishing marginal utility: “the common pattern that each marginal unit of...
Recall the text’s definition of diminishing marginal utility: “the common pattern that each marginal unit of a good consumed provides less of an addition to utility than the previous unit.” The reason for this behavior is because of biology. Our body sends our brains a signal once too much of a good or service has been consumed. This prevents a person from literally eating until they explode. In your own experience, share two times instances where the law of diminishing...
Explain why the market might provide less than the Pareto optimal amount of income redistribution. Is...
Explain why the market might provide less than the Pareto optimal amount of income redistribution. Is this an argument for using tax revenues as a source of income to redistribute? Explain both sides of the argument. Which side do you think is correct?
1. Which of the following statements best describes the law of diminishing marginal utility? Consumers will...
1. Which of the following statements best describes the law of diminishing marginal utility? Consumers will purchase more of a good at a lower price, ceteris paribus. Consumers maximize total utility when the marginal utility per dollar spent is equal for all goods consumed. Each successive unit of a good consumed yields less additional utility. Consumers behave rationally when the price of a good equals the marginal utility of the good. 2. Assume the price elasticity of demand for Nike...
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In each of the following situations, decide whether Diego has diminishing marginal utility. Explain. a) Every...
In each of the following situations, decide whether Diego has diminishing marginal utility. Explain. a) Every time Diego watches his favorite film, it gives him the same amount of satisfaction. b) Diego loves pizza and he can eat great quantities, but, he finds that each additional slice that he eats gives him a little less satisfaction than the previous roll gave him. c) Diego quite happy with his college major, hotel management. The more hotel management classes he takes, the...
31. Which of the following is a clear example of the law of diminishing marginal utility?...
31. Which of the following is a clear example of the law of diminishing marginal utility? 0 As the price of his favorite candy bar rises, Martin buys fewer and fewer candy bars. O Julia eats three cookies. She takes 20 seconds to eat the first one, 1 minute to eat the second one, and 3 minutes to finish the third one. O Marta develops an allergy to milk. She drinks less of it each month as the allergy gets...
1. Describe in detail the role that the hypothalamus plays in determining whether or not you...
1. Describe in detail the role that the hypothalamus plays in determining whether or not you feel like eating Click here to enter answer 2. Name the key hormone that causes a feeling of hunger. Indicate where in the body it is produced and the process by which it operates. - Click here to enter answer- 3. Name the key hormone that causes a feeling of satiety. Indicate where in the body it is produced and the process by which...
Lisa spends all her income on pizzas and soda. The table below shows Lisa's marginal utility...
Lisa spends all her income on pizzas and soda. The table below shows Lisa's marginal utility for pizza and marginal utility for soda. If the price of pizza is $10, the price of soda is $5, and Lisa has $40 to spend on the two goods, what combination of pizza and soda will maximize her utility? Please show your answers in your table by circling the equilibrium marginal utility per dollar for the two goods and units of pizza and...
1. (25) Consider the following utility function which specifies Eli’s preferences over two goods, Xy- lophones...
1. (25) Consider the following utility function which specifies Eli’s preferences over two goods, Xy- lophones (X) and Yo-Yos (Y ). (Please note that we call this type of utility function quasi-linear.) √ U(X,Y)=10 X+20Y (a) (5) What is the marginal utility of X? Label your answer MUX and draw a box around your answer. What is the marginal utility of Y? Label your answer MUY and draw a box around your answer. What is the marginal rate of substitution...
Question 7 According to utilitarian justice, the redistribution of income from the rich to the poor causes the rich to sacrifice a lot and the poor to gain a little. the marginal utility of both the rich and the poor to increase. the marginal utility of both the rich and the poor to decrease. an increase in total utility because of the law of decreasing marginal utility.
2 . 8) Diminishing marginal utility means that A) marginal utility decreases as consumption decreases. B) marginal utility increases as consumption increases. C) marginal utility decreases as consumption increases. D) total utility decreases as marginal utility decreases E) total utility decreases as marginal utility increases. 9) Which of the following is the best example of how the invisible hands works? A) The government places restrictions on prices of products, B) The government decides to force firms to produce more electricity....
31. Which of the following is a clear example of the law of diminishing marginal utility? 0 As the price of his favorite candy bar rises, Martin buys fewer and fewer candy bars. O Julia eats three cookies. She takes 20 seconds to eat the first one, 1 minute to eat the second one, and 3 minutes to finish the third one. O Marta develops an allergy to milk. She drinks less of it each month as the allergy gets...
1. Describe in detail the role that the hypothalamus plays in determining whether or not you feel like eating Click here to enter answer 2. Name the key hormone that causes a feeling of hunger. Indicate where in the body it is produced and the process by which it operates. - Click here to enter answer- 3. Name the key hormone that causes a feeling of satiety. Indicate where in the body it is produced and the process by which...
Lisa spends all her income on pizzas and soda. The table below shows Lisa's marginal utility for pizza and marginal utility for soda. If the price of pizza is $10, the price of soda is $5, and Lisa has $40 to spend on the two goods, what combination of pizza and soda will maximize her utility? Please show your answers in your table by circling the equilibrium marginal utility per dollar for the two goods and units of pizza and...
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