The well-being score for Marcella (income $22,000) is 6.5, and the well-being score for Mariko (income $180,000)
Question:
The well-being score for Marcella (income $22,000) is 6.5, and the well-being score for Mariko (income $180,000) is 10.2. Across the two of them, total well-being is 16.7. The change in well-being for a $5,000 change in income for Marcella is .5 and for Mariko is .2. What net change in total well-being will occur if $5,000 of Mariko's income is taken as tax and transferred to Marcella through an income transfer?
a)Total well-being will fall to 16.4 for a net loss of .3. | ||
b)Total well-being will remain constant at 16.7, but how it is distributed across Marcella and Mariko will change. | ||
c)Total well-being will rise to 17.4 for a net gain of .7. | ||
d)Total well-being will rise to 17 for a net gain of .3. |
Business Law Today The Essentials
ISBN: 978-0324786156
9th Edition
Authors: Roger LeRoy Miller, Gaylord A. Jentz