The law of diminishing marginal utility
a. is valid only after basic necessities (such as food and shelter) have been obtained
b. says that marginal utility decreases as more of a good is consumed
c. implies that spending on a good will decrease as more of that good is consumed
d. says that marginal utility decreases as income increases
e. implies that spending on a good decreases as income increases
B
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The price elasticity of demand for Red Delicious apples, a certain type of apple, is likely
A) elastic. B) inelastic. C) perfectly elastic. D) perfectly inelastic. E) unit elastic.
Which of the following is NOT a restriction the government imposes to keep potential entrants out of a market?
A) patents B) tariffs C) assistance with opening new firms D) copyrights
In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities for gain is known as
A) rational self-interest.
B) altruism.
C) sufficiency.
D) empiricism.
If an individual farmer in a perfectly competitive agricultural market raises her price above the market price, the farmer will
A. See other farmers follow the price rise. B. Earn greater total profit. C. Not sell any product. D. Earn greater total revenue.