If marginal utility becomes negative for the first time, which of the following is true?
a. Total utility is growing steeply
b. Total utility begins to decline.
c. A rational consumer would never knowingly pay a positive price for these units of the good or service generating negative marginal utility.
d. Total utility equals marginal utility.
e. Both b. and c. above are correct.
e
You might also like to view...
? Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase:
A. ?both the price level and real GDP. B. real GDP without raising the price level. C. the price level without affecting real GDP. D. ?the price level but reduce real GDP.
One major component of money supply M1 is part of a bank's:
A. Assets B. Reserves C. Liabilities D. Net worth
Refer to the below graph. Assume the market for this product started out at the intersection of D2 and S1. Then supply shifted from S1 to S2 due to an excise tax imposed on the product. If demand subsequently shifts from D2 to D1, then which of the following will decrease?
A. The tax per unit of the product
B. The tax revenue
C. The deadweight loss due to the tax
D. The portion of the tax per unit that is shouldered by the buyers
In the former Soviet Union,
A. the collective farms were more productive per acre than the private plots of land owned by peasants. B. there was no private ownership of any farmland. C. the private plots of land were more productive per acre than the large collective farms. D. the land under cultivation was equally split between private plots of land and the collective farm