If marginal utility is declining but still positive, total utility is increasing.
Answer the following statement true (T) or false (F)
True
Total utility is the sum of all marginal utilities up to that point. Since marginal utility is positive, total utility must be rising.
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Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and an increase in quantity demanded are represented by a movement from
A) point a to point b. B) point a to point c. C) point c to point d. D) point d to point b.
According to economic liberalism, the regulating force of the economy is
a. self-interest. b. laissez-faire. c. competition. d. the government.
Individuals are more likely to engage in productive activities when institutions and policies
a. create a fair and unbiased judicial system. b. result in high and variable rates of inflation. c. transfer a large share of income through the political process. d. are used to centrally plan the economy.
Which is not true of market equilibrium?
A. Circumstances can change from day to day which make any equilibrium very tentative. B. All sellers who want to sell at the equilibrium price can find a buyer to sell to. C. All buyers who want to buy at the equilibrium price can find a seller to buy from. D. It is the most desirable outcome that a social order could have.