Answer the following statement(s) true (T) or false (F)
1. Marginal willingness to pay rises as more is consumed.
2. More consumers create a smoother market demand curve.
3. Marginal benefits are benefits consumers receive from consuming as much of a product as possible.
4. A rise in price increases consumer surplus.
5. Producer surplus measures the net gains in economic well-being received by sellers.
1. False
2. True
3. False
4. False
5. True
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Which of the following countries is not a member of The Group of Seven?
A. the United States B. China C. Germany D. Japan
What is the most likely consequence when people's preference for current consumption rises in relation to future consumption?
a. Interest rates will fall, and the rate of extraction of exhaustible natural resources will decrease. b. Interest rates will fall, and the rate of extraction of exhaustible natural resources will increase. c. Interest rates will rise, and the rate of extraction of exhaustible natural resources will decrease. d. Interest rates will rise, and the rate of extraction of exhaustible natural resources will increase. e. Interest rates will fall, and there will be no effect on the rate of extraction of exhaustible natural resources.
If an investor thinks interest rates are likely to rise, she would:
A. sell her bonds and hold more money. B. buy more bonds now and hold less money. C. not change her money holdings at all. D. not alter her bond portfolio until interest rates actually rise.
A cartel is a group of firms that try to monopolize the market.
a. true b. false