In a public goods context, it is difficult to measure its impact on real income because
A. public goods are generally free to the public.
B. they make up a small percentage of total GDP.
C. people do not reveal how they value public goods.
D. inflation decreases the value of the good.
C. people do not reveal how they value public goods.
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Comment on the following statement: "Diminishing marginal utility means that total utility falls when an additional unit of a good is consumed."
What will be an ideal response?
Unions try to raise wages mainly by directing
A. the demand for labor. B. the supply of labor. C. both the demand for labor and the supply of labor. D. neither the demand for labor nor the supply of labor.
The Ability-to-pay Principle
What will be an ideal response?
Which one of the following is a source of conflict between owners and managers?
A. Managers and owners are both risk-takers. B. Managers are more risk-averse, whereas owners are not. C. Managers are less risk-averse, whereas owners are not. D. Managers and owners are both highly risk-averse.