A decrease in the price of product X will:
a. increase the marginal utility per dollar spent on X
b. decrease the marginal utility per dollar spent on X.
c. result in an increase in the total utility from consumption of X.
d. do both (a) and (c).
d
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Refer to Figure 2-12. One segment of the circular flow diagram in the Figure shows the flow of funds from market F to economic agents G. The funds represent spending on goods and services. What is market F and who are economic agents G?
A) F = product markets; G = firms B) F = factor markets; G = firms C) F = factor markets; G = households D) F = product markets; G = households
Which of the following is NOT a reason for rising health care expenditures in the United States over the last 40 years?
A) aging of the population B) technological change C) third-party financing of health care expenditures D) discovery of new diseases
If $1 is worth .8 Canadian dollars, then 1 Canadian dollar is worth:
A. $1.25. B. $1.80. C. $0.20. D. $0.80.
Adam Smith believed that monopoly is the most efficient market structure
a. True b. False Indicate whether the statement is true or false