The first question is highly suspect in its value in testing one's economics knowledge, considering that all basic economics texts (left, right, center, libertarian, or whatnot) teach that preferences are ordinal (ranked rather than real-valued) and interpersonally incomparable. So people who took economics would have been explicitly told to answer oppositely from what Klein considered correct!
This point was raised in the MR discussion and other places. (Bob Murphy wrote an introductory text that uses Klein's exact sentence as an example of an economic error in reasoning.)
I agree that there's a sense in which a dollar means more to a poor person than a rich, but that sense is not an economic one, but one of morality or cognitive science.
I agree that there's a sense in which a dollar means more to a poor person than a rich, but that sense is not an economic one, but one of morality or cognitive science.
Consider the following thought experiment. Depending on a coin toss, you'll become either rich or poor. Your decision is between granting $1 to the hypothetical version of yourself that's poor, or to one that's rich. Which do you choose? It seems like a perfectly clear-cut decision problem, with an equally clear-cut correct answer. There is also an obvious Counterfactual Mugging variant, ...
A article in the Atlantic, linked to by someone on the unofficial LW IRC channel caught my eye. Nothing all that new for LessWrong readers, but still it is good to see any mention of such biases in mainstream media.
I break here to comment that I don't see why we would expect this to be so given the reality of academia.