For Michael, the first cup of coffee he drinks every morning is heavenly. The second one is pretty good, but not as good as the first, and if he drinks a third cup he feels jittery and sick. For Michael, the marginal utility from drinking a cup of coffee is clearly:
A. negative.
B. positive.
C. decreasing.
D. increasing.
Answer: C
You might also like to view...
In the 1980s and most of the 1990s, the federal government
A) ran small deficits. B) ran small surpluses. C) ran large deficits. D) was balanced.
If a firm is earning a profit, then:
A. the ATC must be higher than the market price. B. total revenue must be higher than total cost. C. the ATC must be higher than AR. D. MR is equal to MC.
Eliminating health disparities across various population groups requires that we:
a. initiate health system reform to bring about universal insurance coverage. b. address the source of many individual disparities that rest in behavioral, socioeconomic, and environmental factors. c. expand in-patient hospital access for inner-city residents. d. focus solely on improving the health of our most vulnerable population groups. e. provide better health and nutritional education.
In the third quarter of 2008, investment in the US totaled $1.4 trillion and in 2007, investment was $1.3 trillion. In addition, third quarter real GDP was $11 trillion. Suppose the MPC in the US is 0.8. ignoring the effects of imports and taxes, the multiplier is __________ and the change in investment will decrease equilibrium expenditure by __________.
a) 2; $1 trillion b) 5; $1 trillion c) 2; $200 million d) 5; $500 million