Question

Question 2:

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

Answer 1

Answer:

Explained below

Explanation:

Washington Monument strategy is a public relation tactic and a political tool to readjust the budget shortfalls in a way that it affects the local public. For instance the closing of Washington Monument as a result of low budget allocations then it can simply close a key public attraction to gain attention to the crisis.

It is a mode of manipulation highly debated of the nature and the way it operates. It simply functions by cutting down items with high marginal utility in pursuit of increasing political opposition of the budget cuts.

The cutting of low marginal utility does not affect people as much as the high marginal utility which in turn makes them more welcoming to it. The strategy is often misleading as people are unknown to the real agenda behind such steps taken.

Answer 2

Answer:

No,income and expenses change, so your budget changes too.

Explanation: