Which of the following is true, according to the law of diminishing marginal utility?
A. The marginal utility of Diane's second Coke is greater than the marginal utility of her third pretzel, other things constant.
B. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third pretzel, other things constant.
C. The marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, other things constant.
D. The total utility of two Cokes is greater than the total utility of three Cokes, other things constant.
Answer: C
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Which of the following is considered a determinant of long-run economic growth?
a. Increase in the interest rates b. Changing expectations c. Increase in the money supply d. Growth in productive resources e. Reduction in government spending
Taxes drive a wedge into the market by raising the price that sellers receive and lowering the price that buyers pay
a. True b. False Indicate whether the statement is true or false
An increase in the wage rate of steel workers will reduce the supply of steel.
Indicate whether the statement is true or false.
Merit goods have received considerable attention toward the end of this chapter. Can concerts and other publicly provided services be rationalized using these ideas?
What will be an ideal response?