According to the paradox of value, expensive goods, such as gemstones, provide consumers with
A) high total utility and low marginal utility.
B) low total utility and low marginal utility.
C) low total utility and high marginal utility.
D) high marginal utility and high total utility.
C
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All else being equal, if Asian restaurants switch from serving French champagne to serving California wines, then the market equilibrium value of the exchange rate for the U.S. dollar will:
A. either rise or fall depending on whether the supply or demand for dollars changes more. B. become fixed. C. rise. D. fall.
Explain why the money supply does NOT change when one individual writes a check to another
What will be an ideal response?
Absent any violations of the conditions underlying the first welfare theorem, the competitive market equilibrium is efficient if and only if tastes are quasilinear.
Answer the following statement true (T) or false (F)
Rivalry among firms and individuals for sales to consumers
a. is the natural regulator that makes a market system work. b. is known as competition. c. regulates the allocation of resources in a market system. d. All of these.