A rational individual will never consume a unit of a good if its
A. marginal utility is negative.
B. marginal utility is diminishing.
C. marginal utility is increasing.
D. marginal utility is greater than the price of the good.
Answer: A
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According to this Application, in the 1990s EU countries had ________ in the production of all products compared to Latvia
A) an absolute advantage and a comparative advantage B) neither an absolute advantage nor a comparative advantage C) an absolute advantage but not a comparative advantage D) a comparative advantage but not an absolute advantage
A fixed exchange rate system reduces the impact of
A) variations in the demand for real money balances on real incomes. B) the volatility of aggregate expenditures on real incomes. C) crowding out from fiscal expenditures. D) the beggar-thy-neighbor effect.
Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. This implies the consumer should purchase more apples and fewer bananas in order to maximize utility
a. True b. False Indicate whether the statement is true or false
How does the demand curve facing a home monopolist compare in a no-trade situation to a situation in which a quota protects the monopolist's output?
a. They are identical. b. The quota-protected demand curve lies to the right of the no-trade demand curve. c. The quota-protected demand curve lies to the left of the no-trade demand curve. d. The no-trade demand curve is perfectly price elastic at the world price; the quota-protected demand curve has a negative slope.