Which of the following is NOT an assumption of marginal utility theory?
A) People derive utility from their consumption.
B) More consumption yields more total utility.
C) Marginal utility diminishes with more consumption.
D) Utility can be measured and the units of utility are precisely defined.
D
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Which of the following would be included in the GDP Price Index but not in the Consumer Price Index?
a. The price of a Chrysler automobile b. The price of a fighter aircraft c. The price of a used computer d. The price of a tube of toothpaste e. The price of a bottle of shampoo
Explain why on average the profit levels for invention and entrepreneurship are generally so low
When insurance causes people to take more risks, this is called
A. defective telescopic faculty. B. adverse selection. C. asymmetric information. D. moral hazard.
One World View article titled "EU Farm Subsidies" reports about the European Union, "… the subsidy for every cow is greater than the personal income of half the people in the world." Which of the following programs is involved?
A. Consumer rebates. B. A reduction of production costs. C. Direct income support. D. Price supports.