We Take One Dollar from a Pauper and Give It

question 94

Multiple Choice

We take one dollar from a pauper and give it to a millionaire. Assuming a diminishing marginal utility of money,

• A)total utility in the economy must rise.
• B)total utility in the economy must fall.
• C)total utility in the economy must remain the same.
• D)we cannot say whether or not total utility changes.

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Definitions:

Coping Skills

Techniques or methods used by individuals to manage stress, adversity, or emotions, enabling the navigation through difficult situations effectively.

Work Rate

The efficiency and speed at which an individual or machine performs a task or duty.

Selective Optimization

A strategy of focusing on and maximizing strengths or opportunities, while minimizing weaknesses or losses, often used in developmental psychology.

Compensation

Payment or reward given for service, achievement, harm, or loss, often pertaining to employment or legal restitution.