The marginal utility of a unit of good Y to Jane is
a. the additional utility that Jane gets from consuming one more unit of Y.
b. defined in money terms as the minimum amount Jane is willing to pay for that additional unit of Y.
c. defined in money terms as the maximum amount Jane is willing to pay for all the Y she buys except that additional unit.
d. All of the above are correct.
a
You might also like to view...
Suppose the market-clearing price of wheat is $2.50 per bushel. At a price above $2.50,
A) supply would equal demand. B) quantity supplied would equal quantity demanded. C) quantity supplied would exceed quantity demanded. D) quantity supplied would be less than quantity demanded.
In the classical model, people hold money because
a. it is a way to save. b. it makes trade easier. c. it is the way to measure the value of goods and services. d. it is an asset.
Which of the following is NOT a focus of the study of economics?
A) how individual preferences are formed B) unemployment C) inflation D) prices in particular markets
Suppose the market for autoworkers is initially in equilibrium, but then the demand for automobiles increases and simultaneously the automakers allow autoworkers less flexibility working at the plants. What happens in the market for autoworkers?
A) The equilibrium wage rate will increase and the equilibrium quantity of labor will increase, decrease or stay the same. B) The equilibrium wage rate will increase, decrease or stay the same and the equilibrium quantity of labor will increase. C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease. D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.