Why Isn't the Level of Personal Income Always a Good

question 100

Essay

Why isn't the level of personal income always a good measure of the distribution of goods and services?

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Definitions:

Murray Weidenbaum

An American economist known for his contributions to public policy, environmental economics, and as a key economic advisor during the Reagan administration.

Thorstein Veblen

A prominent American economist and sociologist known for his theories on the social implications of economic behaviors, particularly conspicuous consumption and leisure class.

Benjamin Franklin

A founding father of the United States, known for his contributions to the fields of science, politics, and economics.

MPC

Marginal propensity to consume (MPC) represents the ratio of the change in consumer spending to the change in income, showing how much income will be spent rather than saved.