The concept of a "merit good" violates the presumption of "consumer sovereignty"
Indicate whether the statement is true or false
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In the United States, all of the following are deductions generally allowed by the IRS on individual income taxes except
A) mortgage interest. B) charitable contributions. C) contributions to retirement plans. D) rent payments.
Suppose the total market value of all final goods and services produced in economy X this year is $4 million. Of the $4 million worth of goods and services, $3 million is sold and $1 million is held in inventory. For this year, the GDP for economy X is
A) $4 million. B) $3 million. C) $1 million. D) $7 million. E) none of the above
A landlord will supply his or her land for rental only if in equilibrium
A. he or she receives economic rent on the land. B. he or she is paid at least the opportunity cost of using the land himself or herself. C. his or her land is marginal. D. his or her rate of return on his or her investment in the land is zero.
Which of the following is correct?
A. There is no firm mathematical relationship between marginal utility and total utility. B. Total utility is equal to the change in marginal utility from consuming an additional unit of a product. C. If marginal utility is diminishing and is a positive amount, total utility will increase. D. If marginal utility is diminishing, total utility must also be diminishing.