The concept of diminishing marginal utility is the idea that;
(a) Total satisfaction will decrease as more units of a good are consumed;
(b) The satisfaction gained from each additional unit of a good will decrease;
(c) Total utility will become negative;
(d) Both (a) and (c) describe it.
Answer: (b) The satisfaction gained from each additional unit of a good will decrease;
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b. has a comparative advantage in that activity. c. can complete the particular job most rapidly. d. enjoys that job the least.
When economists are trying to help improve the world, they are
a. in the realm of positive economics rather than normative economics. b. in the realm of macroeconomics rather than microeconomics. c. scientists. d. policy advisers.
There are currently about _______ million Americans who are members of labor unions.
Fill in the blank(s) with the appropriate word(s).
Suppose the economy's production function is Y = A(300N - N2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.005G.(a)If G is 26,000, what are the real wage, employment, and output?(b)If G rises to 26,400, what are the real wage, employment, and output?(c)If G falls to 25,600, what are the real wage, employment, and output?(d)In cases (b) and (c), what is the government purchases multiplier; that is, what is the change in output divided by the change in government purchases?
What will be an ideal response?