question 1

question 2

Marginal Utility Marginal Utility MUC MUS 0 $5,000 10,000 15,000 Income Singer O $5,000 10,000 15,000 Income Catalano Refer to the diagrams, which show identical marginal utility from income curves for Singer and Catalano. The marginal utility from income curves are drawn on the assumption that Multiple Choice Singer buys more inferior goods than does Catalano. ha Hantaranum Refer to the diagrams, which show identical marginal utility from income curves for Singer and Catalano. The marginal utility from income curves are drawn on the assumption that Multiple Choice Singer buys more inferior goods than does Catalano. Singer and Catalano have identical capacities to enjoy income. Catalano has a greater capacity to enjoy Income than does Singer. O Singer has a greater capacity to enjoy income than does Catalano. The basic argument for income inequality is that Multiple Choice the very rich establish consumption patterns that are desirable for the rest of society to emulate. the rich buy luxury goods that soon become affordable to everyone else because of economies of scale. Income inequality is essential to maintain incentives to produce. inequality undermines Incentives and tends to reduce the size of the national income