A local restaurant offers an "all you can eat" Sunday brunch for $12. Susan eats four servings, but leaves half of a fifth helping uneaten. Why?
A. Her marginal value of a serving of brunch has fallen below $12.
B. Her marginal value of a serving has fallen below $2.36 ($12 divided by 5 servings).
C. Her marginal value of food has fallen to zero.
D. The total value she places on brunch today exactly equals $12.
Answer: C
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What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side?
A. Demand-side inflation is short-lived, while supply-side inflation lasts for a long time. B. Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits. C. Supply-side inflation is subject to the control of policymakers, while demand-side inflation is beyond their reach. D. Demand-side inflation is normally accompanied by rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
When the marginal propensity to consume is less than 1, the:
A. Average propensity to consume is greater than 1 B. Average propensity to save is greater than 1 C. Marginal propensity to save is negative D. Marginal propensity to save is positive
Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, the corresponding total revenue function is:
A) 6Q. B) 90 - 6Q. C) 90 - 3Q. D) 90Q - 3Q2.
In the United States, the fact that the gap between the rich and the poor has been increasing is often justified by economists on the grounds that greater
a. efficiency can never be achieved without greater inequality. b. inequality does not create any problems. c. inequality is a desirable end in itself. d. inequality is an undesirable consequence of greater efficiency. e. efficiency should be achieved at any cost.