The assumption that the marginal utility of wealth diminishes implies that
A) total utility falls when wealth increases.
B) the marginal utility of wealth is negative.
C) total utility increases with wealth and each additional unit of wealth increases total utility by a smaller amount.
D) total utility increases with wealth and each additional unit of wealth increases total utility by the same amount.
C
You might also like to view...
The unemployment rate is the number of unemployed people
A) divided by the sum of the number of people who are working and the number of people who are looking for work. B) and the number of people working fewer than their desired number of hours, divided by the number of people who are working or looking for work. C) divided by the total working-age population. D) divided by the number of people who are working.
The tax burden will fall most heavily on sellers of the good when the demand curve
A. is relatively flat, and the supply curve is relatively steep. B. is relatively steep, and the supply curve is relatively flat. C. and the supply curve are both relatively flat. D. and the supply curve are both relatively steep.
The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2010. What is real GDP in 2010?
A) $530
B) $1080
C) $510
D) $210
E) $300
Which of the following is NOT an automatic stabilizer?
A. Food stamps B. Unemployment insurance benefits C. Public assistance D. A supply-side tax cut