Diminishing marginal utility means that as you consume more of a good, other things constant, the:
a. total satisfaction you obtain from consuming this good falls.
b. total amount produced falls.
c. marginal product falls.
d. additional satisfaction you obtain from each additional unit of the good falls.
e. total satisfaction you obtain from each extra good becomes constant.
d
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Gertie saw a pair of jeans that she was willing to buy for $35. The price tag said they were $29.99. Therefore:
A. Gertie should buy the jeans because the price is more than her reservation price. B. Gertie should not buy the jeans because they will be of lower quality than she expected. C. Gertie should buy the jeans because the price is less than her reservation price. D. Gertie should not buy the jeans because the price is not equal to her reservation price.
A loud band plays a concert late at night in a neighborhood park. The noise produced by the band that keeps the neighbors not attending the concert awake is
A) only a private cost. B) only an external cost. C) both a private cost and an external cost. D) neither a private cost nor an external cost. E) a private benefit because the neighbors get to hear the band.
Which of the following is a reason why aggregate supply decreased following the housing bubble collapse?
A. Businesses could not access credit to carry out their daily operations. B. Consumption decreased. C. People stopped investing in homes. D. Government tax rates were altered as a response to change in aggregate output.
Direct controls have a clear advantage where
a. an emission is so dangerous that it is prohibited altogether. b. a sudden change in circumstances calls for prompt and substantial change in conduct. c. effective and dependable metering devices have not been invented or are prohibitively costly to install and operate. d. All of the above create an advantage.