Which of the following is likely to occur as the result of the law of diminishing marginal utility?
A) Petra's utility from her second apple was less than her satisfaction from her first orange.
B) Hudson enjoyed his second slice of pizza more than his first.
C) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar.
D) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant.
Answer: D
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Over a year, the money supply in a nation grew by 8 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent
A) 7 B) 9 C) 13 D) 3
The above figure shows the reaction functions for two pizza shops in a small isolated town. Compare the Cournot, Stackelberg, cartel, and competitive equilibria in terms of total output and welfare
What will be an ideal response?
Suppose there is a semiskilled labor market and two different unskilled labor markets. Initially, all three markets are in competitive equilibrium. What would happen if the government imposed a minimum wage rate above the competitive equilibrium rate in one of the unskilled labor markets?
a. Wage rates will rise in all three markets. b. Wage rates will rise in both unskilled labor markets, but remain unchanged in the semiskilled labor sector. c. Wage rates will rise in the semiskilled labor market and in the unskilled labor market covered by the minimum wage, but fall in the other unskilled labor market. d. Wage rates will rise in the unskilled labor market covered by the minimum wage, remain unchanged in the other unskilled labor market, and fall in the semiskilled labor market. e. Wage rates will rise in the unskilled labor market covered by the minimum wage, but remain unchanged in the other two markets.
Aggregate demand (AD) refers to the amount of total spending on:
a. domestic goods and services in an economy. b. international goods and services in an economy. c. domestic marketing of goods and services in an economy. d. international marketing of goods and services in an economy.