In economics, people make decisions regarding consumption based on comparing
A) additional units of satisfaction with additional costs.
B) average satisfaction with additional costs.
C) average satisfaction with average costs.
D) additional units of satisfaction with average costs.
Answer: A
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In the foreign-exchange market, trading
A) is restricted to the hours 10 A.M. to 3 P.M. New York time. B) may not take place after 5 P.M. London time. C) takes place at any hour of the night or day. D) takes place at prices set by the U.S. government in consultation with the governments of other leading countries.
Total surplus is
a. equal to consumer surplus minus producer surplus. b. equal to the total value to buyers minus the total cost to sellers. c. equal to consumers' willingness to pay plus producers' cost. d. greater than the sum of consumer surplus plus producer surplus.
A tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union since the tariff would most likely
A) lower the price of the output that workers purchase. B) lower the domestic production of the good and increase wages. C) increase the demand for domestic, union-made goods. D) decrease the cost of the imported goods.
A monopoly firm's demand curve
A) is the same as the market demand curve. B) is perfectly inelastic. C) is more inelastic than the demand curve for the product. D) is inelastic at high prices and elastic at lower prices.