Figure 5-18
In Figure 5-18, point D for the consumer
a.
will be chosen because total utility is larger there than at point C.
b.
would not be chosen because it is less desirable than point C.
c.
is unattainable, given the consumer's budget.
d.
has total utility equal to point C.
c
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The "Law of Diminishing Marginal Returns" could also be termed the "Law of Increasing Marginal Costs."
Indicate whether the statement is true or false
A monopoly price reflects a good's marginal utility
a. True b. False Indicate whether the statement is true or false
Faced with an adverse supply shock, if the central bank wants to stabilize output, it should
A. decrease the money supply. B. increase the money supply. C. decrease government spending. D. increase government spending.
The increase in wage inequality resulting from globalization can be reversed through:
A. decreases in worker mobility. B. revoking the principle of comparative advantage. C. making markets more competitive. D. increases in worker mobility.