If a product has a diminishing, but positive, marginal utility, then:
A. Total utility decreases at an increasing rate
B. Total utility will become negative
C. Total utility increases at a diminishing rate
D. Total utility decreases at a diminishing rate
C. Total utility increases at a diminishing rate
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If a grocery store offers a five percent discount to senior citizens, this is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; always illegal per se C) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly D) price discrimination; always illegal per se
Labor productivity rises when
A. average worker output rises. B. nominal wages fall. C. business investment falls. D. average worker output falls.
Excess burden is the
A. amount by which the burden of a tax exceeds the total revenue collected. B. shifting of the tax from one burden to another. C. differential impact the tax has on high-and low-income groups. D. ultimate distribution of a tax.
Refer to the data. If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, we can conclude that the tax:
Answer the question on the basis of the following before-tax consumption schedule for a closed economy:
A. enhances the economy's built-in stability.
B. reduces the economy's built-in stability.
C. neither increases nor decreases built-in stability.
D. increases the MPC and therefore increases the size of the multiplier.