Question

There seems to be a paradox between goods and money. Consider the following. Would you be...

There seems to be a paradox between goods and money. Consider the following.

Would you be better off if the amount of:

a) Food and Clothing you have suddenly doubled?

b) Food and Clothing EVERYONE has suddenly doubled?

c) Money you have suddenly doubles?

d) Money EVERYONE has suddenly doubles?

Explain the difference in your answers to parts B and D.

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Answer #1

Anyone would be better off if the amount of option (C) Money you have suddenly doubles.

Difference between (b) Food and clothing Everyone has doubled and (D) Money Everyone has suddenly doubles

The basic difference between both is profit. If amount of food and clothing will doubled than it will only satisfy human wants but no one can do the investments. If amount of money will double than everyone will have full authority to use his increased money in any ways. It can use to do future investment which is not posible with increased amount of Food and Cloth.

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