Regretting the last unit of consumption of beer implies that
A) the total utility from drinking beer is negative.
B) beer is an inferior good.
C) the marginal utility of the last unit of beer consumed is negative.
D) the demand curve for beer is horizontal.
Answer: C
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During recent Global Economic Crises, consumers' wealth in the U.S. declined as a result of all of the following EXCEPT
A) the stock market crash. B) pricking of the housing bubble. C) increased household borrowing. D) aggressive fiscal policy.
A free rider problem arises when
a. there are very few beneficiaries and exclusion of any one of them is possible. b. there are many beneficiaries and exclusion of any one of them is possible. c. there are many beneficiaries and exclusion of any one of them is impossible. d. there are very few beneficiaries and they all try to use the good simultaneously.
In economics, another term for seigniorage is:
A) inflation tax. B) royalty. C) high inflation. D) government borrowing.
The duopoly price strategy provides ________ incentive to maintain cartel pricing as compared to the grim-trigger strategy.
A. a greater B. less of an C. the same D. The answer depends on the firms' average cost curves.