Question 4 1 pts At the same tax rate, marginal utility from consumption divided marginal revenue from income taxation for is greater for Celeste than for Lulu. The theory of optimal income taxation suggests Lulu should be taxed at a lower rate than Celeste. 0 Celeste and Lulu should be taxed at the same rate. 0 Celeste and Lulu should not be taxed at all. 0 Celeste should be taxed at a lower rate than Lulu. Graph 11 -2 Represents Cara's budget constraint and preferences Income Leisure Question 13 Refer to Graph 11-2. At point A, Cara's marginal rate of substitution of leisure for income 0 exceeds the wage and Cara would like to work more hours. (9 exceeds the wage and Cara would like to work fewer hours. 0 is less than the wage and Cara would like to work more hours. 0 is less than the wage and Cara would like to work fewer hours. Question 14 1pts Refer to Graph 11-2. Which of the statements below is the most accurate? @ At point A, Cara's marginal valuation of leisure is higher than the market wage 0 At point B. Cara values leisure the same amount as at point A. 0 At point B. Care's marginal valuation of leisure is higher than the market wage. 0 At point A, Cara's marginal valuation of leisure is higher than the market wage. and at point B, Cara values leisure the same amount as at point A. Question 15 Refer to Graph 11-2. Based on the graph above, we can conclude that O Cara does have nonincome wealth and she is spending less hours on leisure than work 0 Cara does not have any nonincome wealth and she is spending less hours on leisure than work 0 Cara does have nonincome wealth and she is spending more hours on leisure than work @ Cara does not have any nonincome wealth and she is spending more hours on leisure than work