If we graph marginal utility, the curve has a negative slope. This is because of the
A. optimal purchase rule.
B. law of increasing costs.
C. law of diminishing marginal utility.
D. marginal rate of substitution.
Answer: C
You might also like to view...
The Fed has control over the long-term real interest rate provided that three variables remain unchanged. These three variables include all of the following except
A) the expected rate of inflation. B) the default premium. C) term structure effects. D) the short-term real interest rate.
The ultimate effect of a reduction in the money supply is: a. a leftward shift of the aggregate demand curve
b. a rightward shift of the short-run aggregate supply curve. c. a movement upward along the aggregate demand curve. d. a movement downward along the aggregate demand curve. e. a movement upward along the short-run aggregate supply curve.
The following figure shows the demand and cost curves facing a firm with market power in the short run.
The profit-maximizing level of output is
A. 60 units. B. 70 units C. 80 units D. 90 units. E. 100 units.
If a fall in the price level made people feel richer and initially increased aggregate expenditures by 20, the AD curve would:
A. shift by less than 20. B. not shift at all. C. shift by exactly 20. D. shift by more than 20.