The law of diminishing marginal utility states that
a. total utility falls as more of a good is consumed, other things constant
b. total utility falls as marginal utility falls, other things constant
c. marginal utility falls as total utility increases, other things constant
d. marginal utility falls as more of a good is consumed, other things constant
e. marginal utility falls as less of a good is consumed, other things constant
D
You might also like to view...
Who receives corporate interest before any disbursement of profit is made to others?
a. employees b. management c. shareholders d. banks e. bondholders
A futures contract is an example of:
A. a contract that is traded but is not a financial instrument. B. an instrument used solely by financial institutions. C. a derivative instrument. D. a high-risk security that will only have value if certain events occur.
Bank lending and deposits tend to change as interest rates change. Can the Fed counteract this tendency?
A. Yes, through its ability to affect the money supply. B. Yes, through its ability to change tax levels. C. No, the Fed is forbidden by the Constitution from intervening in the economy. D. No, the Fed almost always follows a passive monetary policy.
When domestic production causes pollution that imposes an external cost on the country, the country may export the wrong products because
A. the price of the product should be lower, which could lead to less production of the product. B. the price of the product should be lower, which could lead to no exports of the product. C. the price of the product should be higher, which could lead to no exports of the product. D. the price of the product should be higher, which could lead to more exports of the product.