The most common pattern for marginal utility is ______.
A. diminishing marginal utility
B. substitute consumption
C. a budget constraint model
D. a long-term perspective theoretical model
Answer: A. diminishing marginal utility
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Which of the following are required for economic growth?
i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices A) i only B) ii and iii C) ii only D) i and iii E) i and ii
Suppose you have spent your entire budget and, for all the goods you purchase, the marginal utilities per dollar spent are identical. Which of the following is true?
a. You are being irrational. b. You can increase your utility by reallocating your income. c. You will reduce your utility if you allocate income in any other way. d. You are minimizing your marginal utility. e. You can avoid diminishing marginal utility.
Taylor has the following assets and liabilities:Two cars$15,000House$400,000Mortgage$300,000Cash$1,000Car loans$5,000Checking account balance$3,000Credit card balance$3,000 What is the value of Taylor's liabilities?
A. $303,000 B. $308,000 C. $311,000 D. $300,000
Monopolistically competitive firms may not be able to produce goods at the lowest possible average cost. This statement is describing how monopolistically competitive firms might be _____.
(A) Without economies of scale. (B) Unable to engage in price fixing. (C) Lacking differentiation. (D) Unsuccessful at nonprice competition.