The principle of diminishing marginal utility can be used to explain why
A) Bob's second soda is less enjoyable than his first soda.
B) Bob's first soda is less enjoyable than his second soda.
C) Charlie enjoys his fourth soda less than Bob enjoys his first.
D) Bob enjoys his first soda more than Charlie enjoys his fourth.
A
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At price P3in Figure 4-21, what will tend to happen?
A. There will be a shortage, and the price will fall. B. There will be a shortage, and the price will rise. C. There will be a surplus, and the price will rise. D. There will be a surplus, and the price will fall. E. Equilibrium will occur in the market.
Bobby was researching the economic growth of a country between 2006 and 2011. Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP. His results indicate that
A) he made an error when calculating nominal GDP. B) the quantity of goods and services produced decreased over the period. C) the quantity of goods and services produced increased and prices decreased over the period. D) the quantity of goods and services produced and prices both decreased over the period. E) the quantity of goods and services produced did not change and prices decreased over the period.
Which of the following are characteristics of a proprietorship? I. Single owner II. Limited liability
A) I only B) II only C) both I and II D) neither I nor II
Describe the demand curve for a Giffen good
What will be an ideal response?