Refer to the Above Diagrams That Show Identical Marginal Utility

question 30

Multiple Choice

Refer to the above diagrams that show identical marginal utility from income curves for Singer and Catalano.If this initial distribution of $15,000 to Singer and $5,000 to Catalano is altered in favor of greater equality,it may be argued that:

• A) the combined total utility of the two consumers will decline because Catalano has a greater capacity to derive utility from income than does Singer.
• B) incentives to produce will be weakened and total income will decrease.
• C) incentives to produce will be enhanced and total income will increase.
• D) the combined total utility of the two consumers will decline because Singer has a greater capacity to derive utility from income than does Catalano.

---

Definitions:

Car Color Preferences

The particular likings or choices of individuals regarding the color of automobiles, often studied in marketing and psychology to understand consumer behavior.

Luxury Cars

High-end vehicles that offer superior comfort, performance, and features, often characterized by their higher price points and brand prestige.

Randomly Selected

The process of choosing a sample in such a way that each member of the population has an equal chance of being included.

Psychosomatic Problems

Health issues that arise from or are significantly influenced by the mind and emotions rather than purely physiological causes.