As a person consumes more of a good, the
A) marginal benefit increases.
B) marginal benefit decreases.
C) marginal benefit increases or decreases depending whether or not the economy is on the PPF.
D) price of the good falls.
B
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It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate this claim.
What will be an ideal response?
One reason Zimbabwe suffered from hyperinflation is that the government had decided to pay for all of its expenses by
A) selling Treasury bonds to foreign governments. B) selling its government-run oil company to a private company, which then defaulted on its payment. C) raising interest rates to attract foreign direct investment, then nationalizing the foreign-owned facilities. D) printing more and more money.
Under second degree price discrimination, the average price per unit paid by high demand consumers is not equal to marginal willingness to pay for one additional unit.
Answer the following statement true (T) or false (F)
Some economists criticize the Lorenz curve because it
A. measures unreported income earned in the underground economy. B. uses after-tax income when pre-tax income is more appropriate. C. includes too many things in measuring income, such as food stamps, housing aid, and other government programs. D. does not account for the effect of age on a family's income.