If, when you consume another piece of candy, your marginal utility is zero, then
A) you want more candy.
B) you have maximized your total utility from consuming candy.
C) you have not yet reached the point of diminishing marginal utility.
D) you should consume less candy.
Answer: B
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In perfect competition, the marginal revenue of an individual firm
A) is zero. B) is positive but less than the price of the product. C) equals the price of the product. D) exceeds the price of the product.
Assume a bank has $200 million of assets with a duration of 2.5, and $190 million of liabilities with a duration of 1.05. If interest rates increase from 5 percent to 6 percent, the net worth of the bank falls by
A) $1 million. B) $2.4 million. C) $3.6 million. D) $4.8 million.
Figure 10-2
At which point in is the economy experiencing an economic recession?
a.
J
b.
I
c.
F
d.
H
Economic growth causes:
A. a movement away from the production possibility curve. B. the production possibility curve to shift in. C. the production possibility curve to shift out. D. a movement toward the production possibility curve.