If the price of a good falls, the marginal utility per dollar spent on that good:
A. also falls.
B. stays the same.
C. rises.
D. will rise or fall, depending on the consumer.
Answer: C
You might also like to view...
A market failure occurs when
a. shortages or surpluses of some good cannot be eliminated. b. a private market cannot provide a good in socially efficient quantities. c. consumers' surplus falls to zero. d. property is privately owned and people behave competitively.
The tax multiplier is negative because increases in taxes lead to decreases in consumer spending
Indicate whether the statement is true or false
If adopted by a firm, a labor-saving piece of technology is one that would:
A. increase labor demand. B. increase labor supply. C. decrease labor demand. D. decrease labor supply.
In economics, investment refers to the process of accumulating:
a. capital goods. b. consumer goods. c. money. d. stocks and bonds.