Answer the following statements true (T) or false (F)
1. Marginal utility is the accumulation of the total utility from successive units of a good or service consumed.
2. The law of diminishing marginal utility suggests that the total utility that a consumer derives from a product will increase slower and slower as more of the product is consumed.
3. If total utility increases as consumption of a good increases, then marginal utility must be increasing also.
4. With diminishing marginal utility, if a consumer reduces her consumption of a good, then her marginal utility from that good would increase.
5. The price of chicken = 5 while the price of pork = 9. If, after spending her entire budget, the consumer has MU of chicken = 6 while the MU of pork = 12, then the consumer should have bought more chicken and less pork in order to increase his total utility.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
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The unemployment rate is calculated as:
A) (number of unemployed) ÷ (number of employed + number of unemployed). B) (number of unemployed) ÷ (number of employed). C) (number of employed + number of unemployed) ÷ (labor force). D) (labor force) ÷ (number of unemployed).
Which of the following most accurately describes what occurs during a time of inflation?
A) People must work longer to live as well. B) Prices rise faster than incomes. C) The average standard of living declines. D) The cost of living increases. E) The purchasing power of money falls.
According to the second monetarist proposition, which of the following factors do not determine the level of real output in the long run?
a. The stock of capital goods b. The size of the labor force c. The quality of the labor force d. The state of technology e. The quantity of money
Government-led antitrust actions are far more common than private antitrust cases.
Answer the following statement true (T) or false (F)