Diminishing marginal utility is best illustrated by which of the following statements?
a. A decrease in the price of hot dogs will cause consumers to buy more hot dogs, because the lowered price has increased their effective real income.
b. A person will receive less satisfaction from consuming four hot dogs than from consuming three hot dogs.
c. A person will receive less added satisfaction from consuming a fourth hot dog in a week than from consuming the third hot dog in a week.
d. If the price of hot dogs declines, people's tastes for hot dogs will increase.
c
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Providing a fixed number of workers with additional capital will ________ average labor productivity at a ________ rate.
A. increase; increasing B. decrease; decreasing C. increase; constant D. increase; decreasing
A Nash equilibrium is
A) reached when an oligopoly's market demand and supply intersect. B) reached when each player chooses the best strategy for himself and for the group. C) an equilibrium comprising non-dominant strategies only. D) reached when each player chooses the best strategy for himself, given the other strategies chosen by the other players in the group.
When a resource has a perfectly elastic supply curve
A) the amount of economic rent for the resource is determined by its supply. B) the amount of economic rent for this resource is determined by demand for the resource. C) there is no economic rent being earned by this resource. D) the entire payment received by this resource is economic rent.
If Allison's marginal utility of her 100th dollar of income is greater than Brad's marginal utility of his 10th dollar, then we can conclude:
a. money means more to Allison. b. money means more to Brad. c. Brad is richer than Allison. d. Allison is richer than Brad. e. nothing, since we can't make interpersonal utility comparisons.