Which of the following is consistent with the assumptions of marginal utility theory?
A) As Jose consumes more of one good, his marginal utility from consuming more of that good decreases.
B) As Jose consumes more of one good, his marginal utility from consuming more of that good increases.
C) As Jose consumes more of one good, his marginal utility from consuming more of all goods decreases.
D) As Jose consumes more of one good, his marginal utility from consuming more of all good increases.
A
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Wealth is
A) equivalent to saving. B) another name for income. C) the same as investment in financial capital. D) defined as the money in your savings account. E) the value of all the things that a person owns.
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in wealth, she will use ________ for consumption each year
A) $10.00 B) $25.00 C) $100 D) $333
Price elasticity of demand is useful because it measures __________ responsiveness to changes in __________
a. taxpayers'; demand b. producers'; supply c. consumers'; price d. consumers'; demand e. producers'; income
The view that those whose preferences represent the middle position on an issue will tend to determine the outcome of an election is called: a. rent seeking
b. the median voter model. c. the special interest effect. d. the cyclical majority problem.