Question

In: Economics

The interviewer shares, the fact is that some people will work hard to earn a lot...

The interviewer shares, the fact is that some people will work hard to earn a lot of money while others will be content with much less income, what does this indicate to you?

Solutions

Expert Solution

Each person in this world is different . So one may want to have more money while other may be content with the less amount of money he or she has. . If we look at it from the point of view of Economics, we can say that marginal utility of money is different for them. Utility of money refers to the want satisfying power of money. Marginal utility of money means the additional utility he gets from having one more unit of money.

*If a person is happy with less income. It means that he is not after money. Money doesn't mean much for him.

> This inturn means that he has diminishing marginal utility of money or income. The additional utility he derives from getting one more unit of money income declines with every Increase in the money income he already has.

This is shown in the following diagram. MU represents the marginal utility curve.

* If a person is happy with more income or he wants to earn as much as he can, it implies that he has Increasingly marginal utility of money. The additional utility he derives from getting one more unit of money income increases with every Increase in the money income he already has.

This is shown in the diagram below. MU represents the marginal utility curve


Related Solutions

Question 8: Let’s say an interviewer wants to select 2 people at random of 3. The...
Question 8: Let’s say an interviewer wants to select 2 people at random of 3. The three individuals are Sally, Joe, John. a.) List the sample space of this experiment (that is make all possible outcomes that can happen in this situation). b.) Given each event in the sample space is equally likely, find each probability . c.) What is the probability of selecting Joe in this interview? Question 9: Please answer the following questions and determine if this represents...
Suppose we wanted zero poverty. This would cost a lot to some people and they would...
Suppose we wanted zero poverty. This would cost a lot to some people and they would need to sacrifice. When we take wealth or income away from higher-income people and give it to lower-income people, some people believe that it destroys incentives. How would you answer the following questions? a. What are the effects of this kind of redistribution? b. Are you pro or against this redistribution. Justify your arguments in this redistribution debate.
Older people often have a hard time finding work. AARP reported on the number of weeks...
Older people often have a hard time finding work. AARP reported on the number of weeks it takes a worker aged 55 plus to find a job. The data on number of weeks spent searching for a job contained in the table below. 17 0 0 28 18 37 7 13 33 0 24 50 4 48 5 19 3 25 2 29 4 8 8 32 1 27 7 47 6 0 a. Provide a point estimate of the...
Older people often have a hard time finding work. AARP reported on the number of weeks...
Older people often have a hard time finding work. AARP reported on the number of weeks it takes a worker aged 55 plus to find a job. The data on number of weeks spent searching for a job are contained in the Excel Online file below. Construct a spreadsheet to answer the following questions. Confidence Level: 0.95 Job Search Time (Weeks): 10 50 7 3 10 17 6 27 1 14 19 11 13 2 0 40 6 16 52...
Older people often have a hard time finding work. AARP reported on the number of weeks...
Older people often have a hard time finding work. AARP reported on the number of weeks it takes a worker aged  plus to find a job. The data on number of weeks spent searching for a job contained in the table below. a. Provide a point estimate of the population mean number of weeks it takes a worker aged  plus to find a job. Round the answer to two decimal places. weeks b. At  confidence, what is the margin of error? Round the...
Linda is assigned to audit some items in the financial statements for Work Hard Sdn Bhd...
Linda is assigned to audit some items in the financial statements for Work Hard Sdn Bhd for the year ended 31 August 2020. She has discoverred the following information: Client company’s cash account balance and its bank account balance have shown different figures. The company has prepared a bank reconciliation statement for the month ended 31 August 2020. Linda has been told by the company’s management that there are few cheques outstanding which were issued in July 2020 to pay...
Which of the following does not belong? a) A lot of CBA benefits are hard to...
Which of the following does not belong? a) A lot of CBA benefits are hard to quantify. b) A lot of CBA outcomes are not clear. c) Everyone agrees CBAs are appropriate analytical tools. d) None of the above
Life on the prairie is hard on soldiers in 1876, and so a LOT of drinking...
Life on the prairie is hard on soldiers in 1876, and so a LOT of drinking occurs. General George Armstrong "Autie" Custer wants to know whether there is a significant difference in the shooting ability of his soldiers when sober vs. when in their cups. He invites the soldiers to a shooting competition and collects data on their target shooting.   The numbers represent how many times a man-size target was hit in 20 attempts by people in each group. Soldier  ...
In 2010, Ticketmaster found out the hard way that the entertainment industry is not, in fact,...
In 2010, Ticketmaster found out the hard way that the entertainment industry is not, in fact, as recession-proof as it was once widely believed to be. Th e company, which sells tickets for live music, sports, and cultural events, and which represents a signifi cant chunk of parent company’s Live Nation Entertainment’s business, saw a drop in ticket sales that year of a disconcerting 15 percent. Th en there was the mounting negative press, including artist boycotts, the vitriol of...
In 2010, Ticketmaster found out the hard way that the entertainment industry is not, in fact,...
In 2010, Ticketmaster found out the hard way that the entertainment industry is not, in fact, as recession-proof as it was once widely believed to be. Th e company, which sells tickets for live music, sports, and cultural events, and which represents a signifi cant chunk of parent company’s Live Nation Entertainment’s business, saw a drop in ticket sales that year of a disconcerting 15 percent. Th en there was the mounting negative press, including artist boycotts, the vitriol of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT