When using the terms “total utility“ or “marginal utility,” we assume
A. the consumer will exchange one commodity for another.
B. the consumer will part with money for the commodity.
C. the consumer has declined to purchase the commodity.
D. the consumer can measure utility in exact monetary terms.
Answer: B
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Workers in Adam Smith's famous pin factory example, who were proficient in pin production, then faced the problem of
a. too many different tasks. b. becoming bored with their jobs. c. having to exchange pins for other goods and services. d. not having enough pins to purchase other goods and services.
If Mary earns $80,000 in taxable income and pays $40,000 in taxes, her marginal tax rate must be 50 percent
a. True b. False Indicate whether the statement is true or false
If a company raises the price on a product with inelastic demand, the total revenue will
a. true b. false
The economy will reach equilibrium in a simple economy only if saving is
A. greater than investment. B. less than investment. C. equal to investment. D. equal to disposable income.