A Team of Researchers Has Conducted a Study of the Well-Being

question 99

Multiple Choice

A team of researchers has conducted a study of the well-being of the citizens of the island nation of Zarasa. Using a scale from 1 (least happy) to 10 (most happy) , the researchers find that citizens who earn 100 Zarutas per year have a mean happiness of 2.0, those who earn 200 Zarutas per year have a mean happiness of 6.0, and those who earn 300 Zarutas per year have a mean happiness of 7.0. The researchers should make which of the following conclusions?

• A) The utility of Zarasians increases with income.
• B) The marginal utility of Zarasians increases with income.
• C) The marginal utility of Zarasians decreases with income.
• D) both A and B
• E) both A and C

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