Consumers must understand the law of diminishing marginal utility in order to maximize their satisfaction
a. True
b. False
B
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Explain the concept of a backward-bending labor supply curve.
What will be an ideal response?
A depositor places $10,000 in cash in a commercial bank, where the required reserve ratio is 10 percent. The bank sends the $10,000 to its Federal Reserve Bank. As a result, the actual reserves, required reserves, and excess reserves of the bank have been increased by:
A. $10,000, $9000, and $1000 respectively B. $10,000, $500, and $4500 respectively C. $10,000, $1000, and $9000 respectively D. $1000, $10,000, and $9000 respectively
John and Jack are both trying to sell a used car to Jim. John's car is a lemon, a car that has a serious but nonobvious problem. Jack's car is a cherry, a car that has no problems. Jim cannot tell the difference between the cars. Economists say this information problem might be solved with signaling. Who has an incentive to find a way to signal quality?
A. John but not Jack B. Jim C. Both Jack and John D. Jack but not John
Using the data in the above table, what is the marginal product of the third employee?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 12 pizzas per hour