The law of diminishing marginal utility implies that as a household consumes more of a product, its total utility will increase by larger amounts -assuming marginal utility remains positive.
Answer the following statement true (T) or false (F)
False
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Union membership declined during the 1920s due to:
a. failure of a number of strikes. b. increase in real wages left the labor force satisfied. c. firms' use of "yellow-dog" contracts. d. poor union leadership. e. All of the above.
Marginal utility is defined as the
a. average amount of satisfaction gained from consuming a product b. total amount of satisfaction gained from consuming a product c. additional satisfaction gained from consuming one more unit of a product d. total amount of satisfaction gained from consuming a product divided by the number of units consumed e. total amount of satisfaction gained from consuming a product times the number of units consumed
The random walk theory of stock prices indicates that
a. if they are willing to do a little research, even beginning investors will be able to pick the stocks that will increase most in price in the future. b. managed mutual funds will persistently earn a higher rate of return than indexed funds. c. current stock prices already reflect information about factors influencing future stock prices that can be forecast with any degree of accuracy. d. stock market investors can expect to earn a steady real rate of return of about 7 percent annually.
If there are no externalities, a competitive market achieves economic efficiency. If there is a negative externality, economic efficiency will not be achieved because
A) too little of the good will be produced. B) too much of the good will be produced. C) a deadweight loss will occur that is equal to the area under the demand curve for the good. D) economic surplus is maximized.