The change in the total utility as a result of increasing consumption by one unit is known as
A) marginal utility.
B) average utility.
C) proportional utility.
D) utils.
Answer: A
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A reason why a firm's demand for labor curve slopes downward is that, holding everything else constant,
A) the extra cost of hiring additional units of labor increases as a firm hires more units of labor. B) as more labor is hired, labor's marginal product falls due to diminishing marginal returns. C) the firm's demand curve for the product produced by the labor is downward sloping. D) each additional unit of labor hired is less efficient than previously hired units.
If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?
a. The quantity of milk demanded will increase. b. The quantity of milk supplied will decrease. c. There will be a surplus of milk. d. There will be a shortage of milk.
Suppose the price of gasoline rises and consumers cut back on their use of gasoline relative to other consumer goods. This situation would contribute to which bias in the consumer price index?
a. Substitution bias. b. Transportation bias. c. Quality bias. d. Indexing bias.
The price elasticity of demand is a measure of
A. the demand for a product holding prices constant. B. the horizontal shift in the demand curve when the price of a good changes. C. the quantity demanded of a good at a given price. D. the responsiveness of the quantity demanded of a good to a changes in the price of the good.