As a general rule, marginal utility will be less:
a. as less of the good is consumed.
b. as more of the good is consumed.
c. when average utility is at a maximum.
d. only when the good is inferior.
e. when satisfaction is less than cost.
b
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Economists typically agree that the special protection given to owners of patents tends to
A) reduce economic growth. B) reduce productivity. C) reduce expenditures on research and development. D) increase expenditures on research and development.
Explain the Fed's three tools of monetary policy and how each is used to change the money supply. Does each tool affect the monetary base or the money multiplier?
What will be an ideal response?
An indifference map states:
A. indifference curves farther from the origin yield higher levels of total utility. B. that the consumer's income varies with the level of the indifference curve. C. indifference curves closer to the origin yield higher levels of total utility. D. that the points on either parts of indifference curves are preferred to the midpoint.
In a budget line, a decrease in income is represented graphically by:
A. a rightward parallel shift of the budget line. B. a change in the slope of an indifference curve. C. a leftward parallel shift of the budget line. D. a change in the slope of the budget line.