2. Table 2 provides information on income levels and associated life satisfaction scores (on a scale of 1-10). Answer the following: • Suppose that there were two families in the economy, one earning $15,000 per year and the other earning $80,000 per year. What is total life satisfaction in this economy? Now suppose that the government decides to transfer $10,000 dollars from the high-income family to the low-income family. What is the new life satisfaction score for the low-income family? What about for the high-income family? What is total life satisfaction in the economy?

2. Table 2 provides information on income levels and associated life satisfaction scores (on a scale of 1-10). Answer the following: • Suppose that there were two families in the economy, one earning $15,000 per year and the other earning $80,000 per year. What is total life satisfaction in this economy? Now suppose that the government decides to transfer $10,000 dollars from the high-income family to the low-income family. What is the new life satisfaction score for the low-income family? What about for the high-income family? What is total life satisfaction in the economy?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 8PA

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