Which best expresses the law of diminishing marginal utility?
A. The more a product is consumed, the greater the total utility received from the product.
B. The less a product is consumed, the smaller the marginal utility received from the product.
C. The more a product is consumed, the smaller the total utility received from the product.
D. The more a product is consumed, the smaller the marginal utility received from the product.
Answer: D
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If there is a surplus
A) fewer producers want to sell the product because it is too scarce. B) consumers will drive up the price further. C) firms will drive up the price to enhance profits. D) the price will decline to the equilibrium level.
Suppose when you are offered $8.00 per hour to work in the campus library, you choose not to work, but when you are offered $12.00 per hour, you accept a part-time position. Your behavior can best be explained by the fact that your supply of labor curve is:
A. upward-sloping. B. vertical. C. horizontal. D. downward-sloping.
If the marginal propensity to save is 0.4 and disposable income decreases from $2,000 to $1,000, saving will
A. decrease by $400. B. decrease by $80. C. increase by $80 D. increase by $400.
Refer to the information provided in Table 24.4 below to answer the question(s) that follow.
Table 24.4
Refer to Table 24.4. At an output level of $1,500 billion, there is an unplanned inventory
A. change of $0. B. increase of $100 billion. C. increase of $200 billion. D. decrease of $200 billion.