Consumers derive consumer surplus whenever
a. the monetary value of total utility equals total expenditure
b. the monetary value of total utility is greater than total expenditure
c. the monetary value of total utility is less than total expenditure
d. marginal utility is greater than total utility
e. marginal utility is less than total utility
B
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Approximately what percentage of U.S. national income is paid to workers, as opposed to owners of capital and land?
a. 25 percent b. 45 percent c. 65 percent d. 85 percent
Once a product becomes established, network externalities may create ________ costs that make consumers reluctant to buy a new product with better technology
A) switching B) marginal C) external D) implicit
Which of the following helps to explain why the supply curve of labor is upward sloping?
A) The substitution effect of a price change makes a good more expensive relative to other goods. B) The supply curve of labor is a derived supply curve; since the output supply curve is upward-sloping so is the labor supply curve. C) As the wage rate rises, the income effect causes the quantity of labor supplied to increase. D) As the wage rate rises, the opportunity cost of leisure rises.
If people expect prices to rise in the future, the consumption curve will shift upward
Indicate whether the statement is true or false