When the price of a commodity falls, we can expect
A. total utility will fall.
B. marginal utility of the last unit purchased will fall.
C. marginal utility of the last unit purchased will rise.
D. purchases will fall because of a change in marginal utility.
Answer: B
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Economic freedom provides the
A) political system that encourages democracy. B) necessary alternative to free markets. C) social system that supports families. D) incentive system that encourages growth-producing activities. E) production system that discourages property rights.
Some property tax limitations, such as California's Proposition 13, only do significant reassessment of property taxes when houses are sold. This creates _____
a. an incentive to rent b. inequity between homeowners of comparable houses c. a disincentive to move d. b and c e. all of the above
Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. An alternative to the quota that would have the same impact on the number of imports would be a tariff of
A) $2,500. B) $5,000. C) $15,000. D) $20,000. E) $13,125,000.
Studies of income mobility show
a. many lower-income households remain in the lowest quintile over time. b. a welfare trap exists over time. c. many of the lower-income households climb to middle-income and even to upper-income classes over time. d. those in the highest-income quintile stay there permanently.