An individual's demand curve slopes down because
A. the value of the marginal utility falls as the price falls.
B. marginal utility falls as price falls.
C. of the law of diminishing marginal utility and the rule of equal marginal utilities per dollar.
D. of the rule that the marginal utility of the last unit must equal the price.
Answer: C
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Capital payments usually represent ________ of income payments
A) two-third B) three-fourths C) one-fourth D) one-third
Figure 5-12
In Figure 5-12, the move in the consumer equilibrium from A to B shows that
A. beer is an inferior good, but wine is a normal good. B. wine is an inferior good, but beer is a normal good. C. both beer and wine are normal goods. D. both beer and wine are inferior goods.
Adverse selection in competitive insurance markets harms
a. high-risk individuals. b. low risk individuals. c. owners of competitive insurance companies. d. everyone.
Suppose that your tuition to attend college is $24,000 per year and you spend $8,000 per year on room and board. If you were working full time, you could earn $30,000 per year. What is your opportunity cost of attending college for one year?
A. $32,000 B. $38,000 C. $54,000 D. $62,000