The following are explanations of the Law of Demand, except:
A. Expectations effect
B. Diminishing marginal utility
C. Income effect
D. Substitution effect
Answer: A
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The Solow model emphasizes the role of which of the following factors of production?
A) land B) labor C) capital D) natural resources
The marginal cost curve intersects the average fixed cost curve at its minimum
Indicate whether the statement is true or false
A local fast-food restaurant mails out coupons for a free sandwich to every home in the community. The opportunity cost of redeeming the sandwich for someone who was on a diet might be:
A. lost wages due to spending time in a long line instead of eating a Healthy Choice meal in your office. B. not eating because you are on a "get fit for the summer" diet plan. C. eating a "Tough Man's Burger," which is one of your favorite fast food options. D. There was no opportunity cost for the sandwich because it was free.
Jimmy's Bakery has an absolute advantage in producing bagels. Which of the following is true of the bakery? a. It produces bagels at a lower opportunity cost than other bakeries
b. It uses more inputs in the production of bagels than other bakeries. c. It is able to produce bagels at a lower production cost than other bakeries. d. It experiences diseconomies of scale in the production of bagels.