When the additional satisfaction from a good declines as more of it is consumed, this illustrates the law of:
a) Exceptional marginal utility.
b) Diminishing marginal utility.
c) Declining demand.
d) Increasing opportunity costs.
Ans: b) Diminishing marginal utility.
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A bilateral monopoly is a market situation in which there is only one buyer and only one seller
a. True b. False Indicate whether the statement is true or false
Which of the following is TRUE about the long run?
A. All resources are fixed. B. At least one resource is fixed. C. All resources are variable. D. none of these
According to the infant industry argument for trade protectionism
A) new industries are capable of competing with established rivals. B) trade barriers must be used to protect domestic workers. C) new industries need to be shielded from competition in the early stages of learning by doing. D) tariffs imposed to aid new industries should never be removed.
Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for an original Picasso painting and the market for designer jeans. Which graph most likely represents which market?
A) Graph B represents the market for an original Picasso painting and Graph A represents the market for designer jeans. B) Graph A represents both the market for an original Picasso painting and designer jeans. C) Graph A represents the market for an original Picasso painting and Graph B represents the market for designer jeans. D) Graph B represents both the market for an original Picasso painting and designer jeans.