Marginal utility theory implies that, starting from consumer equilibrium, a rise in income will __________.
Ans: Increase a consumer's total utility
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Scarcity is defined as the situation that exists when the quantity demanded for a good is greater than the quantity supplied
Indicate whether the statement is true or false
Cartels usually succumb to divisive forces caused by: a. stringent enforcement of a cartel agreement
b. the similarity of production costs across member firms. c. members cheating by giving secret discounts. d. insufficient profits compared to independent operations.
If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States. B. it will have no reason to trade with the US. C. produces more TVs than the United States using the same resources. D. has the ability to produce TVs at a lower opportunity cost than the United States.
Externalities consist of ____________________.
A. Only external costs B. Only external benefits C. Both external costs and external benefits D. None of these answers are correct.