Which best expresses the law of diminishing marginal utility?
A. The more of a product is consumed, the smaller is the total utility from the product
B. The less of a product is consumed, the greater is the marginal utility of the product
C. The more of a product is consumed, the greater is the total utility from the product
D. The less of a product consumed, the smaller is marginal utility of the product
B. The less of a product is consumed, the greater is the marginal utility of the product
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Use the figure below to answer the following question.
What area represents society's total surplus after the government imposes the excise tax on the market?
A. triangle $1c$9 plus triangle $21a$13 B. triangle abc C. square $13ac$9 plus triangle abc D. triangle $1c$9 plus triangle $21a$13 plus rectangle $13ac$9
In the short run, marginal product of labor increases at first and then falls because
A) managerial inefficiency sets in when a firm gets too large. B) the new workers do not have as much experience as those who have been with the firm for a long time and therefore are not as productive. C) there are fewer opportunities for division of labor and specialization when fewer workers are hired. D) as more labor is hired, they are not as skilled as the first ones hired.
A study of consumers in an area found that as family income increased from $25,000 per year to $35, 000 per year, other factors held constant, the number of houses purchased increased from 7,000 per year to 11,000 per year. This finding indicates an income elasticity of demand coefficient for housing over this family income range of:
a. 0.22. b. 0.75. c. 1.33. d. 4.50.
Gross National Product equals:
a) Net National Product adjusted for inflation b) Gross Domestic Product adjusted for inflation c) Gross Domestic Product plus net property income from abroad d) Net National Product plus net property income from abroad