Which of the following is true, according to the law of diminishing marginal utility?
a. The marginal utility of Diane's second Coke is greater than the marginal utility of her third pretzel, other things constant.
b. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third pretzel, other things constant.
c. The marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, other things constant.
d. The total utility of two Cokes is greater than the total utility of three Cokes, other things constant.
e. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third Coke, other things constant.
c
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Sam uses Craig's Netflix account to watch movies and shows but does not actually pay for the service himself. This is an example of
A. The free-rider problem B. Economic optimization C. Scarcity D. Specialization and trade
The federal government's earned-income tax credit
a. provides support only for elderly and disabled poor b. represents a type of in-kind transfer program c. provides food assistance to the working poor d. reduces taxes if the poor buy housing e. offers an income tax refund to the working poor greater than the taxes they paid
Economists determine what consumers can afford using a budget constraint line shown on a line graph where the horizontal axis shows _________________ and the vertical axis shows __________________.
a. the quantity of one good/the quantity of another good b. utils/total utility c. the quantity of available goods/the amount of money the consumer has to spend d. the amount of money the consumer has to spend/total utility
Given a required reserve ratio of 10 percent for all banks, total bank reserves of $400 billion could support maximum deposits of:
A. $400 billion. B. $4,000 billion. C. $40 billion. D. $1,600 billion.