Marginal utility is the
A) usefulness of a product.
B) utility that a person receives from the consumption of goods and services.
C) change in utility that results from a one-unit change in the quantity of a good consumed.
D) change in utility that results from a one-unit change in the price of a good consumed.
C
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Wage differentials between occupations can be explained by all of the following except
A) the relative differences between demand and supply in various occupations B) the fact that some occupations are more desirable than others. C) the market power of different employers. D) the fact that some occupations require higher levels of human capital than others.
Empirical evidence suggests that: a. technological change leads to higher unemployment rates
b. the unemployment rate in the U.S. in the late 1990s was lower than that in the 1970s. c. the unemployment rate in the U.S. in the late 1990s was higher than that in the 1970s. d. changes in the growth rate of population lead to higher unemployment rates. e. increase in government regulation leads to higher unemployment rates.
The marginal product of a variable resource decreases as each additional unit of that resource is employed is increasing marginal returns
Indicate whether the statement is true or false
Susan's search costs are $7 per search. She wants to buy a coat, and the lowest price she has found so far is $180. Susan thinks 25 percent of the stores charge $180 for this coat, 50 percent charge $160, and the other 25 percent charge $150. Susan's optimal decision is to:
A. stop searching and purchase a coat for $180. B. continue to search for a lower price since the expected benefit of an additional search is $17.50, which exceeds her per-unit search costs. C. continue to search for a lower price since the expected benefit of an additional search is $10, which exceeds her per-unit search costs. D. continue to search for a lower price since the expected benefit of an additional search is $7.50, which exceeds her per-unit search costs.