The concept that suggests the consumption of the first few units of any good tends to bring a higher level of utility to a person than consumption of later units is the:
a. law of diminishing marginal utility.
b. law of supply.
c. law of demand.
d. law of consumption.
a. law of diminishing marginal utility.
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Which set of points would show a movement from depression to full employment?
A. a movement from Point C to B
B. a movement from Point B to A
C. a movement from Point C to E
D. a movement from Point D to C
The law of diminishing returns states that as
A) the size of a plant increases, the firm's fixed cost decreases. B) the size of a plant increases, the firm's fixed cost increases. C) a firm uses more of a variable input, given the quantity of fixed inputs, the marginal product of the variable input eventually diminishes. D) a firm uses more of a variable input, given the quantity of fixed inputs, the firm's average total cost will decrease eventually.
When the Fed buys $100 worth of bonds from a primary dealer, reserves in the banking system
A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100.
A monopoly can be formed by a bandwagon effect. Which of the following products would most closely match the bandwagon effect?
A) The Atlanta Braves baseball club B) The Dell Computer C) The Apple Watch D) The Chevrolet Corvette