EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
Author: Miller
Publisher: YUZU
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Question
Chapter 20, Problem 2FCT
To determine
Reason to substitute own utility assessments for those of people that officials seek to nudge.
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Which political philosophy's prime objective is to raise total utility?
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The rules of politics are not always the same as the rules of economics. In the discussions of setting budgets for government agencies, there is a strategy called closing the Washington monument. When agency faces the unwelcome prospect of a Budget cut, it may decide to close a high visibility attraction enjoyed by many people like the Washington monument. Explain in the terms of diminishing marginal utility why the Washington monument strategy is so misleading if you are really trying to make the best of a budget cut, should you cut the items in your budget with the highest marginal utility or the lowest marginal utility? Does the Washington monument strategy cut the items with the highest or lowest.
The rules of politics are not always the same as the rules of economics. In discussions of setting budgets for government agencies, there is a strategy called “closing the Washington Monument.” When an agency faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by many people (like the Washington Monument). Explain in terms of diminishing marginal utility why the Washington Monument strategy is so misleading. Hint: If you are really trying to make the best of a budget cut, should you cut the items in your budget with the highest marginal utility or the lowest marginal utility? Does the Washington Monument strategy cut the items with the highest marginal utility or the lowest marginal utility?
Chapter 20 Solutions
EBK ECONOMICS TODAY
Ch. 20.F - Prob. 1PCh. 20.F - Prob. 2PCh. 20.F - Prob. 3PCh. 20.F - Prob. 4PCh. 20.F - Prob. 5PCh. 20.F - Prob. 6PCh. 20.F - Prob. 7PCh. 20.F - Prob. 8PCh. 20.F - Prob. 9PCh. 20.F - Prob. 10P
Ch. 20 - Prob. 20.1LOCh. 20 - Prob. 20.2LOCh. 20 - Prob. 20.3LOCh. 20 - Prob. 20.4LOCh. 20 - Prob. aFCTCh. 20 - Prob. bFCTCh. 20 - Prob. cFCTCh. 20 - Prob. 1CTQCh. 20 - Prob. 2CTQCh. 20 - Prob. 1FCTCh. 20 - Prob. 2FCTCh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - Prob. 4PCh. 20 - Prob. 5PCh. 20 - Prob. 6PCh. 20 - Prob. 7PCh. 20 - Prob. 8PCh. 20 - Prob. 9PCh. 20 - Prob. 10PCh. 20 - Prob. 11PCh. 20 - Prob. 12PCh. 20 - Prob. 13PCh. 20 - Prob. 14PCh. 20 - Prob. 15PCh. 20 - Prob. 16PCh. 20 - Prob. 17P
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