If marginal utility is negative
A) total utility increases at a decreasing rate.
B) the consumer will not consider extra units of the good even if its price is zero.
C) the consumer will want to consume the unit only if it is free.
D) the consumer likes the commodity, but not as much as he or she once did.
Answer: B
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The hypothesis that people combine the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes is the basis of the
A) short-run Phillips curve hypothesis. B) rational expectations hypothesis. C) demand-pull inflation hypothesis. D) adaptive hypothesis.
Countries with a relatively high stock of skilled labor will have a comparative advantage in producing goods that require relatively larger quantities of skilled labor
a. True b. False Indicate whether the statement is true or false
The share of the labor force that was unionized fell from more than 30 percent in the 1950s to less than 15 percent in the 2000s. During this time period, the share of national income allocated to labor (in contrast to capital)
a. decreased by approximately 10 percent. b. decreased by more than 15 percent. c. increased by 10 percent. d. was virtually unchanged.
Which of the following is not true for a profit maximizing single-price monopolist in the long run?
A. Demand is inelastic. B. Marginal revenue equals marginal cost. C. Price is greater than marginal revenue. D. It will make profit or break even.