Marginal utility is the change in the total utility that a person receives from consuming one more unit of a good or service.
a. true
b. false
b. false
You might also like to view...
After a temporary adverse supply shock hits the economy, general equilibrium is restored by
A) a shift down and to the left of the IS curve. B) a shift to the left of the FE line. C) a shift up and to the left of the LM curve. D) a shift down and to the right of the IS curve.
If marginal profit is negative when the firm produces one more unit, then the firm is currently maximizing profits.
Answer the following statement true (T) or false (F)
Suppose the corn-producing industry of the U.S. is a price taker in the world market and government puts a ban on imports. The corn industry also receives subsidy from the home government. Then
A) social welfare will increase if the ban on imports is removed. B) everyone will be better off if both ban on imports and subsidy are removed. C) social efficiency will be improved if both ban on imports and subsidy are removed. D) the deadweight loss is reduced if subsidy is removed.
Consumers buy less of a good as its price increases because:
a. production costs have risen. b. substitute goods are now relatively cheaper. c. the income of consumers has effectively risen. d. the higher price will make the good more valuable to each consumer.