Nona has just gone on a bike ride for an hour and says it gave her a utility of 7. If she chooses to continue to ride her bike for another hour:
A. we can assume Nona's total utility will fall because of diminishing marginal utility.
B. we can assume she will get at least a marginal utility of more than 7.
C. we can assume she will get a marginal utility of 7.
D. we can assume she will get a marginal utility of less than 7.
Answer: D
You might also like to view...
Consider a firm that uses two inputs, labor and capital, to produce its output. Assume labor is measured on the horizontal axis and capital on the vertical axis
Which of the following best explains why the marginal rate of technical substitution decreases in absolute value as we move down an isoquant? A) The law of imperfect substitutability: labor and capital are not perfect substitutes; therefore, a firm must replace decreases in capital with increases in labor. B) The law of diminishing returns: for a given decline in capital, decreasing amounts of labor are required to produce the same level of output. C) The law of increasing marginal opportunity cost: if a firm uses less and less capital it must use more and more labor, which drives up the cost of labor. D) The law of diminishing returns: for a given decline in capital, increasing amounts of labor are required to produce the same level of output.
The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments? a. The horizontal segment reflects the increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unusedresources. The vertical segment reflects the full employment of all resources
b. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segmentreflects the increasing pressure on the price level as firms bid for resources. c. The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects the increasing pressure on the price level as firms bid forresources. The vertical segment reflects the availability of unused resources. d. The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid forresources. The vertical segment reflects the full employment of all resources. e. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid forresources. The vertical segment reflects the full employment of all resources.
Marginal utility:
A. is the change in a consumer's utility resulting from the addition of a very small amount of some good. B. is the total utility a resulting from consuming some good, divided by the amount consumed. C. is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the amount added. D. is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the total amount being consumed.
Lags in the policy-making process come from:
A. the time it takes for policy to have an impact on the economy. B. the process of deciding on and passing legislation. C. lack of understanding the current state of the economy. D. All of these are true.