When total utility is rising but at a decreasing rate what must be happening to marginal utility? When will total utility stop rising?
What will be an ideal response?
Marginal utility is still positive but it is becoming smaller. Total utility will stop risingwhen marginal utility reaches zero.
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An excess benefit from corrective taxation arises because the tax revenues can be spent on compensation
a. True b. False
If we compare median family income in the U.S. for families headed by an adult with no more than a high school education to that of families headed by an adult with a bachelor's degree, which of the following best describes what we will find?
a. Median family income for families headed by an adult with a bachelor's degree is approximately 70 percent higher than families headed by an adult no more than a high school education. b. Median family income for families headed by an adult with a bachelor's degree is approximately 25 percent higher than families headed by an adult no more than a high school education. c. Median family income for families headed by an adult with a bachelor's degree is approximately 50 percent higher than families headed by an adult no more than a high school education. d. Median family income for families headed by an adult with a bachelor's degree is approximately 90 percent higher than families headed by an adult no more than a high school education.
Which of the following best exemplifies negative marginal product?
a. Hugo’s Pet Supply has so many dog groomers on staff that most days some of them have nothing to do. b. Each new supermarket WRV Foods opens in Springfield is a little less successful than the last. c. Duke’s Auto Sales has had to turn away potential customers because all of its salespeople are busy. d. Tri-Cities Paving has four fully-staffed cement mixers working at full capacity.
The S & L debacle ultimately cost American taxpayers
A. at least $10 billion. B. about $100 billion C. about $200 billion. D. between $300 billion and $500 billion.