In most places of the world, the marginal utility of water is low because
a. its supply is so abundant
b. it is so essential
c. it has so many uses
d. total utility is so high
e. it is very scarce
A
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The marginal product of a country's workers increases during summer due to the pleasant weather. Which of the following is likely to happen in this case, assuming all else equal?
A) The country's labor demand curve will shift to the left in summer. B) There will be a downward movement along the labor demand curve. C) There will be an upward movement along the labor demand curve. D) The country's labor demand curve will shift to the right in summer.
A tax on a specific good or service is called an ad valorem tax
a. True b. False
Two bottles of body wash sit side-by-side in a grocery store: Olay (a brand name) sells for $6.00, while Up and Up (not a brand name) sells for $3.00 . Even defenders of brand names would have to admit that
a. no rational consumer would spend twice as much for Olay as she would for Up and Up. b. the side-by-side presence of these two body washes conveys no useful information to consumers. c. Olay has no incentive to maintain the quality of its product just because of the Olay brand name. d. None of the above is correct.
When demand is elastic, an increase in price leads to:
A. a decrease in total expenditures. B. an undetermined change in expenditures. C. an increase in total expenditures. D. no change in total expenditures.