The tendency for marginal utility to decline as consumption increases beyond some point is called:
A. utility maximization.
B. the rational spending rule.
C. the law of demand.
D. the law of diminishing marginal utility.
Answer: D
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Exporting nations often agree to voluntary export restraints (VERs) in an attempt to:
A. employ more workers in the importing nation. B. avoid more restrictive trade policies. C. increase global welfare. D. decrease inflation.
When a negative externality is present in a market, the quantity consumed:
A. is always less than the socially optimal quantity. B. is more than the socially optimal quantity. C. is the same as the socially optimal quantity. D. is often less than the socially optimal quantity.
The change in total revenue associated with one additional unit of input is referred to as
A. MPP. B. Cost efficiency. C. MRP. D. Elasticity of labor supply.
If the slope of a straight line is -2. and if X (the variable on the horizontal axis) decreases by 8, then Y (the variable on the vertical axis) will
A. increase by 4. B. increase by 16. C. decrease by 16. D. decrease by 4.