The law of diminishing marginal utility states that total utility increases by smaller and smaller increments as more of a good is consumed
a. True
b. False
Indicate whether the statement is true or false
True
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With a price floor:
A. producer surplus will increase if profits increase. B. producer surplus will increase is profits fall. C. producer surplus will decrease if profits increase. D. producer surplus always decreases.
If the U.S. government decides to distribute surplus cheese to food banks for the homeless, the government is addressing the question of
a. which goods and services should be produced with society's scarce resources b. what production methods should be used to produce goods and services c. how will output be allocated among the individuals in the society d. what prices will be charged for goods and services e. determining the optimal degree of specialization
Specialization and trade can make everyone better off if a person can obtain goods at prices that are less than that person's opportunity cost
a. True b. False Indicate whether the statement is true or false
Related to the Economics in Practice on page 316: According to the Economics in Practice, which of the following statements is true?
A. Because tastes tend to be roughly the same across areas, we would expect to see a about the same variety of products available from an online retailer as from an individual brick-and-mortar retailer. B. Because tastes tend to differ across areas, we would expect to see a wider variety of products available from an online retailer than from an individual brick-and-mortar retailer. C. Because tastes tend to differ across areas, we would expect to see a smaller variety of products available from an online retailer than from an individual brick-and-mortar retailer. D. Even though tastes tend to differ across areas, we tend to see a smaller variety of products available from an online retailer than from an individual brick-and-mortar retailer.