Which of the following explains why people eventually stop eating any one item at an all-you-can-eat buffet?
a. the income effect
b. the law of demand
c. the law of diminishing marginal utility
d. the substitution effect
c. the law of diminishing marginal utility
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Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 1 B. 2 C. 3 D. 4
If the Federal Reserve wants to increase the supply of money, it creates dollars and uses them to purchase government bonds from the public in the nation’s bond markets.
Answer the following statement true (T) or false (F)
Which of the following definitions is correct?
A. Economic profit - Accounting profit = Explicit costs. B. Economic profit - Implicit costs = Accounting profits. C. Economic profit = Accounting profit - Implicit costs. D. Accounting profit + Economic profit = Normal profit.
Thinking as an economist would, which is TRUE of investment?
A. It is the portion of disposable income that is not used for consumption or saving. B. Investment represents spending on capital goods. C. Investment is a stock concept. D. Investment is putting money into stocks and bonds.