Refer to the above diagram. Marginal utility:
A) increases at an increasing rate.
B) becomes zero at 4 units of output.
C) is found by dividing total utility by the number of units purchased.
D) cannot be calculated from the total utility information.
Ans: B) becomes zero at 4 units of output.
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The real wage is the:
A. the ratio of wage of unskilled workers to the wage of skilled workers. B. marginal product of labor. C. supply of labor. D. price of labor.
An increase in a consumer’s income will always increase the demand for a good.
Answer the following statement true (T) or false (F)
The private sector balance is equal to ________
A) income minus consumption minus net taxes B) income minus consumption minus investment C) saving minus investment D) income minus consumption
Given the production possibilities schedule in the above table, a combination of 60 televisions and 40 personal computers
A) is attainable but involves an inefficient use of society's resources. B) would be attainable only if a new technology of producing televisions or computers were introduced. C) is not attainable because it is not listed in the schedule. D) is not attainable because society does not have enough resources to produce this combination.