Blair has vast riches and consumes thousands of dollars' worth of consumer goods each week, yet she is never satisfied. Why not?
A. Blair fails to choose rationally.
B. Utility is unrelated to the level of consumption.
C. People's wants are unlimited.
D. The law of diminishing marginal utility shows that consuming too many material goods lowers total utility.
Answer: C
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Oil is an example of a renewable resource
a. True b. False
To have an ideal voting system in place, if a group is voting on option X versus option Y, this decision should not depend on any information or preference about another unconnected option, Z. In other words, which of the following criteria must be present in the voting system?
A. Unanimity B. No dictator C. Transitivity D. Independence of irrelevant alternatives
When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of:
A. thinking at the margin. B. comparative advantage. C. diminishing returns. D. using assumptions to simplify.
Which of the following statements regarding growth was brought out from the material in Chapter 15?
A. There is no correlation between the volatility in growth rates and annual output growth. B. Stability results in higher output growth rates. C. The more volatile the growth rate, the higher is the annual output growth. D. Inflation volatility results in higher output growth rates.