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 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
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