The law of diminishing marginal utility states that total utility increases by smaller and smaller increments as more of a good is consumed
Indicate whether the statement is true or false
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On average, people in the United States spend a smaller percentage of their income on health care than do people in most other countries
Indicate whether the statement is true or false
If the price of hairspray is represented by P in the equation P = 10 - 0.2 QD, then the corresponding quantity of hairspray demanded is represented by the demand equation
A) QD = 50 -5P. B) QD = -10 + 0.2P. C) QD = 0.5P + 2. D) QD = 5P - 2.
Juanita has just started a business and is using her personal car to deliver goods. The use of her car is an example of
A) an explicit cost to the business. B) an implicit cost to the business. C) financial capital. D) interest.
Contrast the circumstances in which economists prefer monetary policy and those in which they prefer fiscal policy for stabilization and explain why they hold these preferences.
What will be an ideal response?