According to the utility model of consumer demand, the demand curve is downward-sloping because of the law of:
a. diminishing marginal utility.
b. diminishing consumer equilibrium.
c. consumer equilibrium.
d. diminishing utility maximization.
a
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Refer to the given data. Zabella's balance on financial account shows a:
Answer the question on the basis of the following 2012 balance of payments data (+ and -) for
the hypothetical nation of Zabella. All figures are in billions of dollars.
A. deficit of $10 billion.
B. surplus of $5 billion.
C. deficit of $28 billion.
D. surplus of $13 billion.
Refer to Figure 26-12. In the dynamic AD-AS model, the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues policy. This will result in
A) real GDP levels higher than what would occur if no policy had been pursued. B) inflation rates higher than what would occur if no policy had been pursued. C) potential real GDP levels lower than what would occur if no policy had been pursued. D) unemployment rates higher than what would occur if no policy had been pursued.
A minimum wage set above the equilibrium wage rate creates
A) efficiency because it increases most workers' wages. B) efficiency because few workers lose their jobs. C) efficiency because workers can earn a living wage. D) inefficiency and a deadweight loss. E) inefficiency because it creates excessive employment.
If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that:
A. demand increased. B. demand decreased. C. supply increased. D. supply decreased.