If successive units of a good are consumed, the marginal utility gained typically:
A. decreases at the same rate for all people.
B. increases at the same rate for all people.
C. decreases at different rates for different people.
D. increases at different rates for different people.
Answer: C
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Which statement is TRUE about Mr. McConaughey's marginal utility from spending time with family and friends and breaking a sweat?
A) The marginal utility Mr. McConaughey gets from the first hour of spending time with his family is less than the marginal utility from the first hour of breaking a sweat. B) The marginal utility Mr. McConaughey gets from the third hour of spending time with his family is less than the marginal utility from the fourth hour of breaking a sweat. C) The marginal utility Mr. McConaughey gets from the fourth hour of spending time with his family is greater than the marginal utility from the fourth hour of breaking a sweat. D) The marginal utility Mr. McConaughey gets from the second hour of spending time with his family is greater than the marginal utility from the first hour of breaking a sweat.
When the price level falls
a. people want to hold less money. b. the interest rate falls. c. investment spending rises. d. All of the above are correct.
Which statement concerning monopolistic competition is false?
A. In the long run P = AC > MC. B. Firms may experience positive economic profits in the long run. C. Firms may experience losses in the short run. D. Firms differentiate their products, but the products are relatively substitutable.
Which of the following factors causes the barter system to be inefficient?
A. Its cost of transaction is too low. B. It requires high liquidity. C. It requires a double coincidence of wants. D. The cost associated with information search is too low.