Consumers do NOT buy as many units of each good as they want because
A) of the law of diminishing marginal utility.
B) they have limited incomes.
C) they do not know what they want in all situations.
D) eventually marginal utility equals zero.
Answer: B
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The identity stating that the total amount spent on final output equals the amount received for final output is known as the
A) equation of exchange. B) circular flow identity. C) identity equation. D) fundamental law of economics.
In the above figure, the short-run aggregate supply curve is SAS1. If the money wage rate increases, there is
A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2.
Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to $200,000
What is the return on your investment in the house if you made a down payment of 10 percent and took out a mortgage loan for the other 90 percent?
In the short run, a firm has fixed costs but never any variable costs.
Answer the following statement true (T) or false (F)