"The second glass of Evian water was very good. May I have another?" Which of the following is necessarily true regarding this statement?
a. The marginal utility of the second glass is negative.
b. The marginal utility of the second glass is less than the marginal utility of the first glass.
c. The marginal utility of the second glass is positive.
d. The water is free.
e. The marginal utility of the third glass is negative.
C
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Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer
Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As the country moves along the frontier closer to the horizontal axis,
A) free lunches occur. B) more shoes are produced. C) more tradeoffs occur. D) more jeans are produced. E) the country eventually chooses an unattainable point.
For each one dollar increase in real GDP, aggregate planned expenditure
A) increases by less than a dollar. B) increases only if autonomous expenditure increases. C) increases by one dollar. D) increases by more than a dollar. E) is unaffected.
Which area in the above figure shows the consumer surplus at the price and quantity that would be attained if the industry were perfectly competitive?
A) A + B + C + D B) A + B + C + D + E C) F + G + H D) A + B + C + D + E + F + G + H