The marginal propensity to consume is always
a. greater than 1
b. between 0 and 1
c. less than 0
d. between 0 and -1
e. between 0 and 0.6
B
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $10
A) only Anya and Basil will buy tickets. B) Celeste's consumer surplus is $25. C) the total consumer surplus from the purchase of tickets will be $61. D) everyone will buy a ticket except for Esther.
As a general rule, marginal utility will be less:
a. as less of the good is consumed. b. as more of the good is consumed. c. when average utility is at a maximum. d. only when the good is inferior. e. when satisfaction is less than cost.
A monopolist can earn a positive economic profit, even in the long run
a. True b. False Indicate whether the statement is true or false
The aggregate supply curve is downward sloping because buyers tend to purchase more of all goods and services as the price level decreases
a. True b. False Indicate whether the statement is true or false