The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. Which of the following CORRECTLY illustrates the principle of diminishing marginal utility? The fact that
A) the sixth magazine has less marginal utility than the sixth CD.
B) Jane's marginal utility per dollar from the second magazine is the same as her marginal utility per dollar from the third CD.
C) the marginal utility per dollar from the sixth magazine is less than the total utility from six magazines.
D) the marginal utility of the third CD is less than the marginal utility of second CD.
D
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If all saving and investment could be placed into a tax-deferred saving account, then the federal income tax would approximate a consumption tax
a. True b. False
To alleviate the commons problem, the government can
A) apply a tax. B) set a quota. C) assign property rights. D) All of the above.
Negative externalities cause loss of welfare not transmitted by market factors.
A. True B. False C. Uncertain
Total market demand can be calculated by
A. looking at the changes in the products' popularity. B. adding up the largest quantity demanded by each individual. C. vertically summing individual demand curves at each and every income level. D. horizontally summing individual demand curves at each and every price level.