The law of diminishing marginal utility says that
a. as more of a good is consumed, total utility diminishes causing marginal utility to diminish as well
b. as more of a good is consumed, total utility increases causing marginal utility to diminish
c. with reference to consumption, more is better than less until a point is reached after which less is better than more
d. with reference to consumption, less is better than more until a point is reached after which more is better than less
e. we always value the "one before the last one" more
E
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In economics, the demand for a good refers to the amount of the good people: a. would like to have if the good were free
b. will buy at various prices. c. need to achieve a minimum standard of living. d. will buy at alternative income levels.
Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending. Such changes would make it more likely that
A) consumers would pay prices closer to the actual costs for routine medical care. B) employers would provide more generous medical coverage to their employees. C) insurance deductibles would decrease. D) the quantity of medical services demanded would increase.
One reason people store wealth is to help smooth consumption over time
Indicate whether the statement is true or false
For the following questions, suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table
pens pencils Year 1 quantity 15 10 Year 1 price $12 $12 Year 2 quantity 17 12 Year 2 price $14 $15 What is the real GDP in year 2 using base year 1? A) $418 B) $300. C) $360. D) $338.