Use diminishing marginal utility to explain why millionaires often do not have many homes, even if they can afford it
Please provide the best answer for the statement.
The law of diminishing marginal utility tells us that as a consumer obtains more units of a given good or service, the consumer receives increasing amounts of total utility or satisfaction. However, the more units of the item that the consumer obtains, the less additional satisfaction or utility each successive unit of the good or service will provide. A millionaire may have a permanent home and a couple vacation homes, but the additional benefit of another house is weak. Even though their income may allow for additional houses, diminishing marginal utility of additional houses means they will not purchase it.
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The interest rate that banks charge on loans to their best customers is called the:
A) federal funds rate. B) discount rate. C) mortgage interest rate. D) prime rate.
The short-run aggregate supply curve is upward-sloping because: a. the quantity of real output supplied is inversely related to aggregate supply
b. nominal incomes are fixed. c. of the conjunction between the incremental capital-output ratio and the interbank offer rate. d. an increase in price will increase the supply of money.
High-wage workers are
a. more likely than low-wage workers to supply more labor when the wage rate rises. b. about as likely as low-wage workers to supply more labor when the wage rate rises. c. less likely than low-wage workers to supply more labor when the wage rate rises. d. The available evidence does not indicate how high-wage workers and low-wage workers differ in responding to changes in the wage rate.
The ability of a country to produce a specific good at a lower opportunity cost than its trading partners is known as
A. The human advantage. B. Absolute advantage. C. The inequality trap. D. Comparative advantage.