The concept of marginal utility:
A. explains why individuals find it difficult to maximize their total utility.
B. is the change in total utility that comes from consuming one additional unit of a good or service.
C. can only be applied to situations in which individuals can choose among several goods or services.
D. is the loss in utility from making a bad decision.
B. is the change in total utility that comes from consuming one additional unit of a good or service.
You might also like to view...
If the government set a price floor at $18
A. there would be a temporary surplus, then prices would fall to equilibrium.
B. the price floor would not have any effect on this market.
C. then quantity demanded would be greater than quantity supplied.
D. there would be a permanent surplus, at least until the price floor was lifted.
If the Fed wanted to stimulate the economy to limit the effects of a recessionary gap, then it should ________ the federal funds rate in order to ________ the real interest rate and thereby ________ investment.
Fill in the blank(s) with the appropriate word(s).
Which of the following factors would indicate a less elastic demand?
A. The good represents a large fraction of the budget. B. Demand is measured over a longer period of time. C. There are few substitutes. D. The price of the good is high.
Suppose nominal GDP in Mexico decreased by 10% in 2020. Given this information, we know with certainty that
A. real GDP in Mexico decreased in 2020. B. the aggregate price level in Mexico decreased in 2020. C. both the aggregate price level AND real GDP decreased in Mexico in 2020. D. more information is needed to answer this question.