Why do people tend to eat more at all-you-can-eat buffet restaurants than at restaurants where each item is purchased separately?
A. Once the all-you-can-eat meal is purchased, consumers view additional trips back to the
buffet as having a price of zero.
B. MU/P is consistently greater at all-you-can-eat restaurants.
C. People who eat at all-you-can-eat restaurants do not experience diminishing marginal
utility.
D. Food at all-you-can-eat restaurants tends to have fewer calories, so consumers feel the
need to consume a greater volume of food.
Answer: A
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Some pollution may be preferable to zero pollution because
A. attempting to decrease the level of pollution to zero may cause significant losses in society's welfare. B. we really do not have that much pollution. C. the nation's citizens are against government's involvement in solving the pollution problem. D. no form of regulation that has been shown to be effective at solving the pollution problem.
Which of the following statements best describes equilibrium?
a. The area above the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. b. The area below the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. c. The point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. d. Any point above where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
In spite of less-than-optimal currency area criteria at present in the Eurozone, some believe that the existence of a working currency union will result in:
A) an improvement in the criteria, as the union members are committed to work for more integration. B) a gradual deterioration of the union, as members seek benefits from having an autonomous monetary policy. C) tension and a power struggle over which will be the dominant economy in the union. D) more delay in implementing needed reforms.
Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. At Point C the price elasticity of demand is -1. Along line segment AB of the demand curve, the demand is
A. inelastic. B. elastic. C. unit elastic. D. either elastic or inelastic, depending on whether price increases or decreases.