Economists consider instances of increasing marginal utility to be
a. normal.
b. impossible.
c. unusual, as in the case of addictions.
d. irrational.
c
You might also like to view...
The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP(1996 $ billions) (A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0Which of the turning points are peaks?
A. (A), (B), and (C) B. (A), (C), and (E) C. (B) and (D) D. (C), (D), and (E)
Which of the following will cause an increase in economic growth?
A) a reduction in the unemployment rate B) a reduction in labor force participation C) an increase in human capital D) a reduction in the stock of physical capital
Good A has an income elasticity equal to 0.4 and a cross price elasticity with respect to Good B of 1.2 . Then: a. Good A is an inferior good and Goods A and B are substitutes. b. Good A is an inferior good and Goods A and B are complements. c. Good A is a normal good and Goods A and B are substitutes
d. Good A is a normal good and Goods A and B are complements.
If Federal Reserve officials attempt to pull the economy out of a recession when the price level is relatively stable, the policies they would most likely use would be to:
a. Buy government securities and increase the discount rate b. Sell government securities and decrease the discount rate c. Buy government securities and decrease the discount rate d. Sell government securities and increase the discount rate