Which of the following statements is NOT true about marginal utility when total utility is at its maximum point?
A) Marginal utility is zero.
B) Marginal utility is decreasing.
C) A rational consumer will not consume additional units beyond this point.
D) Marginal utility is negative.
Answer: D
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Which of the following statements regarding cartels is not correct?
A) Cartels are sometimes difficult to maintain because a member can cheat by raising its price above the agreed price. B) Cartels restrict industry output in order to raise price. C) Cartels are inherently stable, because oligopolistic firms rarely change price. D) are easier to establish and maintain when the cost functions of the individual members are more similar to one another.
Which of the following will not shift the demand curve for televisions?
a. An increase in the price of televisions. b. An increase in consumer income. c. An increase in the price of radios (a substitute). d. An increase in the price of cable service (a complement).
When prices are falling, economists say that there is
a. disinflation. b. deflation. c. a contraction. d. an inverted inflation.
A decrease in aggregate supply means:
A. both the real domestic output and rises in the price level would become greater. B. the real domestic output would increase and rises in the price level would become smaller. C. the real domestic output would decrease and the price level would rise. D. both the real domestic output and the price level would decrease.