As you consume more of a particular commodity, your total level of utility derived from that consumption will
A. increase at a decreasing rate.
B. increase at an increasing rate.
C. increase at a constant rate.
D. remain constant.
Answer: A
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A tax that taxes a larger percentage of an individual's income as their income rises is called a _____
a. proportional tax b. progressive tax c. head tax d. regressive tax
Average variable cost is
a. total cost minus fixed cost b. total variable cost divided by the quantity of output c. total cost plus marginal cost d. total cost per unit of output e. output divided by the quantity of inputs used
When a state road has a pothole, the state department of transportation is responsible for filling it. When a local road has a pothole, the town is responsible for filling it. Either way, the money ultimately comes from the taxpayers. This is an example of how government at different levels:
a. cannot agree on areas of responsibility. b. prevents markets from being profitable. c. pays for public goods. d. allows free riders to take advantage.
Penny, an avocado farmer, wants to purchase a new desk that has been priced at $150. Avocados cost $2.50 each, so Penny knows that the desk is equal to 60 avocados. This illustrates money’s function as a ______.
a. means of deferred payment b. store of value c. medium of exchange d. unit of account