Marginal utility is
A. the difference in price between one store and another.
B. the difference in value between “some” of a thing and “none” of a thing.
C. the difference between any two successive total utility figures.
D. acquired only with the first few units of a good or service.
E. utility that is barely satisfactory.
Answer: C
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Sustainable development implies that succeeding generations preserve the value of
a. natural capital b. physical investment c. all natural resources d. human capital e. none of the above
Use the following information to answer the next question. Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10% interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 each. Of the $75, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. What is the accounting profit generated by Extreme Gaming in the first year?
A. $5,000 B. $160,000 C. $780,000 D. $220,000
Suppose that in each of four successive years producers sell more of their product and at lower prices. This could be explained:
A. by small annual increases in supply accompanied by large annual increases in demand. B. in terms of a stable supply curve and increasing demand. C. in terms of a stable demand curve and increasing supply. D. as an exception to the law of supply.
Refer to the figure below.
If this market is unregulated, the economic surplus received by consumers is:
A. $24. B. $8. C. $16. D. $4.