Which of the following statements is FALSE?
A) The value of one more unit of a good is the good's marginal benefit.
B) A good's marginal benefit is the maximum price people are willing to pay for another unit.
C) The maximum price people are willing to pay for one more unit of a good is its value.
D) None of the above because all the statements are true.
D
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Compared to the situation in which a good is legal, making the good illegal and imposing ________ results in less being sold
A) a much higher fine on sellers than on buyers B) a much higher fine on buyers than on sellers C) any fine on either the buyer or the seller D) all of the above
If the government offers to reduce your property taxes by 10 percent if you install solar heating for your home, this would be an example of
A) police power. B) incentives. C) disincentives. D) ceteris paribus.
When a good commodity is driven out of the market by a bad commodity, the result is called:
a. moral hazard. b. adverse selection. c. positive externality. d. negative externality. e. the commons problem.
Firms may choose to discriminate in order to reduce information costs associated with screening applicants
a. True b. False Indicate whether the statement is true or false