Jenny likes chocolates. One day, a friend offers her a chocolate bar and she is extremely happy on receiving it. As the day progresses, many other people also buy her chocolate
As she gets more and more chocolates, her excitement on receiving each bar is seen to gradually lessen. Which economic principle is reflected in this example?
A) The Law of Increasing Willingness to Pay B) Aggregation of demand behavior
C) The Law of Diminishing Marginal Benefit D) The Law of Equi-Marginal Utility
C
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There are two players in a game. At each round of the game, one player has to trust the other for a particular task. In the first round, Player 1 has to decide whether he will trust Player 2
If he does not trust Player 2, he will get one-third of the prize money, while Player 2 will get the rest of the prize money. If he trusts Player 2, Player 2 can either cooperate with him or defect. If Player 2 defects, Player 1 will earn $0, while Player 2 will get the entire prize money. If Player 2 cooperates, each of them will get half the prize money. What will the equilibrium outcome of this game be if Player 1 can impose a guilt penalty of two-thirds of the prize money and is known to be a vengeful player?
Refer to Table 8-27. What is the level of disposable personal income for this economy?
A) $1,080 billion B) $1,010 billion C) $980 billion D) $860 billion
Think of resources: The aggregate supply curve will shift to the right when the
a. quantity of labor in the society decreases b. capital stock in the economy shrinks c. quantity of natural resources in the society gets smaller d. quantity of labor in the economy increases e. price level in the economy rises
Name three actions the Fed can take to increase the money supply