"As consumption of a good increases, the extra satisfaction received from consuming an additional unit of the good decreases." This statement is known as the law of:
a. demand.
b. increasing costs.
c. diminishing marginal utility.
d. diminishing marginal returns.
e. total utility.
c
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Why are income taxes on capital income more powerful than those on labor income?
What will be an ideal response?
A mixed capitalist economy is one in which
a. decisions are based primarily on religion or custom b. all resources are publicly owned and economic planning is centralized c. all resources are privately owned and prices are used to coordinate economic activity d. resources are both publicly and privately owned and some markets are regulated e. all resources are publicly owned and prices are used to coordinate economic activity
Farm subsidies
A. enable industrial nations to export much of their agricultural output at artificially low prices. B. in the world's richest nations amount to over $300 billion. C. make it more difficult for less developed nations to purchase capital equipment from U.S. manufacturers such as Caterpillar. D. All of the choices are true.
The table below shows the units of land and labor required to produce a unit of bread and cheese respectively in Country X. If Country X is land-abundant, the opening up of free trade would result in 1 Unit of Bread1 Unit of CheeseLabor Input5 units20 unitsLand Input4 units10 units
A. a decline in the production of bread but an increase in the production of cheese in the country. B. an increase in the production of both bread and cheese in the country, but production of cheese will rise at a lesser pace than the production of bread. C. a decline in the production of both bread and cheese in the country. D. an increase in the production of bread but a decline in the production of cheese in the country.