Diminishing marginal utility suggests that
a. more is always preferred to less.
b. the well-being of society is maximized when the distribution of income is equal.
c. the poor are less efficient at spending money than the rich.
d. the poor receive more satisfaction from the last dollar spent than the rich.
d
You might also like to view...
Consider the following scenario: The Kellogg's facility buys corn and makes boxes of cornflakes. The grocer buys the boxes and places them on the shelf. A mother then buys a box for her family
Which of the following would be classified as a purchase of a final good? A) The cornflakes purchased by the mother B) The cornflakes purchased by the grocer C) The corn purchased by Kellogg's D) All of the above. E) None of the above.
Government mandating that every driver have a minimum amount of car insurance addresses the problem of:
A. moral hazard. B. illegal screening. C. adverse selection. D. statistical discrimination.
The difference between opportunity cost of the sellers and the valuation of the buyers is known as:
a. social cost. b. economic value. c. deadweight loss. d. consumer surplus.
In which of the following examples should the first country should trade the named product to the second country?
a. Canada can produce lumber products at a lower opportunity cost than the United States. b. The United States can produce cotton fabric more efficiently than India can, but doing so hurts other U.S. industries. c. Italy can produce leather goods more cheaply than Germany can in the absolute sense. d. Russia can produce more oil than Norway, but it incurs higher production costs than Norway does.