Answer the following statement(s) true (T) or false (F)
1. The law of demand and the law of diminishing marginal utility are related.
2. Most economists find it acceptable to make utility comparisons between different people.
3. The income effect occurs when people value their personal property above the property of others.
4. The law of diminishing marginal utility explains why price and quantity demanded have a negative relationship.
5. Economists measure utility in utils.
1. True
2. False
3. False
4. True
5, True
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How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.50 dollars per British pound?
A) 10 British pounds B) 20 British pounds C) 30 British pounds D) 35 British pounds E) 25 British pounds
A plumbers' union is an example of
A) an industrial union. B) a craft union. C) skilled workers union. D) auxiliary union.
The equilibrium wage rate in an industry is found by
A) the intersection of the market demand curve for labor and the marginal revenue product curve of labor. B) the intersection of the firm's demand curve for labor and the firm's supply curve of labor. C) the intersection of the market demand curve for labor and the market supply curve of labor. D) negotiations between the union leadership and the managers of the firms.
The idea that poor people consume a higher percentage of their income than the rich is a logical conclusion drawn from
a. Keynes's absolute income hypothesis b. Duesenberry's relative income hypothesis c. Friedman's permanent income hypothesis d. the life-cycle hypothesis of consumption e. the consumption function