If the first four units of a good consumed have marginal utilities of 8, 4, 2, and 1, respectively, this trend is an indication of the:
a. law of consumer equilibrium.
b. law of diminishing marginal utility.
c. law of diminishing consumer surplus.
d. law of supply.
b
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An inferior good is a good for which demand
A) decreases when income increases. B) increases when income increases. C) decreases when population increases. D) increases when population increases.
A technology may be considered inappropriate if it
a. uses a lot of capital b. produces a product that few people want c. has a capital-labor ratio that exceeds the rental-wage ratio d. has a capital-labor ratio less than the rental-wage ratio e. none of the above
NAFTA was a controversial issue in the 2008 presidential campaign, particularly in the Democratic primaries
Indicate whether the statement is true or false
The neoclassical perspective on macroeconomics holds that the economy will fluctuate around its potential GDP and its natural rate of __________________ in the long run.
a. unemployment b. production c. supply d. demand