Andrew's utility of wealth schedule is given in the above table. The table indicates that his marginal utility of wealth ________ as his wealth increases
A) diminishes
B) is constant
C) increases
D) increases first and then diminishes
A
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The demand for a resource rises as
A. its productivity rises and the relative prices of substitutable resources rises. B. its productivity rises and the prices of substitutable resources falls. C. its productivity falls and the relative prices of substitutable resources falls. D. its productivity falls and prices of substitutable resources falls.
Table 19.2Quantity ConsumedTotal UtilityMarginal Utility115152 9330 4 3In Table 19.2, the marginal utility of the third unit is
A. 30. B. 5. C. 6. D. 3.
One problem with using market values to measure GDP is that
A. prices for some goods change every year. B. market values of exported goods are usually priced in foreign currencies. C. some useful goods and services are not sold in markets. D. you cannot compare completely heterogeneous goods by using their dollar values.
Consider three ways of allocating two goods in a two-person exchange economy. I. Both individuals take prices as given and equilibrium prices are established by an impartial auctioneer. II. One individual can act as a perfect price discriminator and force the other individual to pay a different price for each unit of a good that is traded. III. One individual is a monopolist and can charge the
other individual a single, utility-maximizing price. Which of these situations is efficient? a. None of them. b. Only I. c. I and II, but not III. d. I and III, but not II.