A person should consume more of something when its marginal
A.benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better.
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D. benefit exceeds its marginal
For economists, the word "utility" means
A. versatility and flexibility
B. rationality
C. pleasure or satisfaction
D. purposefulness
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C. pleasure or satisfaction
If the income elasticity of demand for store brand macaroni and cheese is −3.00, this
means that
A. store brand macaroni and cheese is a substitute for name brand macaroni and
cheese.
B. store brand macaroni and cheese is a normal good.
C. store brand macaroni and cheese is an inferior good.
D. more store brand macaroni and cheese will be purchased when its price falls.
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store brand macaroni and cheese is an inferior good.
Marginal utility can be
A. positive, but not negative.
B. positive or negative, but not zero.
C. positive, negative, or zero.
D. decreasing, but not negative.
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positive, negative, or zero.
,Where total utility is at a maximum, marginal utility is
A. negative.
B. positive and increasing.
C. zero.
D. positive but decreasing.
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zero.
Which of the following is the best example of a supply-side market failure?
A. No one provides street lights in a town because, once the lights are in operation,
people don't have to pay to use them.
B. A firm keeps its production costs down by dumping its waste in the nearby river,
adversely affecting water quality for residents in the area.
C. Government imposes taxes on the production of a socially desirable good.
D. Street performers don't get full payment for the value of their output because
people watch and enjoy the shows without paying the artist.
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A firm keeps its production costs down by dumping its waste in the nearby
river, adversely affecting water quality for residents in the area.
A price floor means that
A. inflation is severe in this particular market.
B. sellers are artificially restricting supply to raise price.
C. government is imposing a maximum legal price that is typically below the
, equilibrium price.
D. government is imposing a minimum legal price that is typically above the
equilibrium price.
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government is imposing a minimum legal price that is typically above the
equilibrium price.
"Essential" water is cheaper than "nonessential" diamonds because
A. new industrial uses for diamonds have been discovered.
B. the supply of water is great relative to demand and the supply of diamonds is small
relative to demand.
C. although the total utility of diamonds is greater, their marginal utility is small.
D. the supply of diamonds is great relative to demand and the supply of water is small
relative to demand.
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the supply of water is great relative to demand and the supply of diamonds
is small relative to demand.
Which of the following is a distinguishing feature of laissez-faire capitalism?
A. public ownership of all capital
B. central planning
C. minimal government intervention
D. a circular flow of goods, resources, and money
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A.benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better.
Give this one a try later!
D. benefit exceeds its marginal
For economists, the word "utility" means
A. versatility and flexibility
B. rationality
C. pleasure or satisfaction
D. purposefulness
,Give this one a try later!
C. pleasure or satisfaction
If the income elasticity of demand for store brand macaroni and cheese is −3.00, this
means that
A. store brand macaroni and cheese is a substitute for name brand macaroni and
cheese.
B. store brand macaroni and cheese is a normal good.
C. store brand macaroni and cheese is an inferior good.
D. more store brand macaroni and cheese will be purchased when its price falls.
Give this one a try later!
store brand macaroni and cheese is an inferior good.
Marginal utility can be
A. positive, but not negative.
B. positive or negative, but not zero.
C. positive, negative, or zero.
D. decreasing, but not negative.
Give this one a try later!
positive, negative, or zero.
,Where total utility is at a maximum, marginal utility is
A. negative.
B. positive and increasing.
C. zero.
D. positive but decreasing.
Give this one a try later!
zero.
Which of the following is the best example of a supply-side market failure?
A. No one provides street lights in a town because, once the lights are in operation,
people don't have to pay to use them.
B. A firm keeps its production costs down by dumping its waste in the nearby river,
adversely affecting water quality for residents in the area.
C. Government imposes taxes on the production of a socially desirable good.
D. Street performers don't get full payment for the value of their output because
people watch and enjoy the shows without paying the artist.
Give this one a try later!
A firm keeps its production costs down by dumping its waste in the nearby
river, adversely affecting water quality for residents in the area.
A price floor means that
A. inflation is severe in this particular market.
B. sellers are artificially restricting supply to raise price.
C. government is imposing a maximum legal price that is typically below the
, equilibrium price.
D. government is imposing a minimum legal price that is typically above the
equilibrium price.
Give this one a try later!
government is imposing a minimum legal price that is typically above the
equilibrium price.
"Essential" water is cheaper than "nonessential" diamonds because
A. new industrial uses for diamonds have been discovered.
B. the supply of water is great relative to demand and the supply of diamonds is small
relative to demand.
C. although the total utility of diamonds is greater, their marginal utility is small.
D. the supply of diamonds is great relative to demand and the supply of water is small
relative to demand.
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the supply of water is great relative to demand and the supply of diamonds
is small relative to demand.
Which of the following is a distinguishing feature of laissez-faire capitalism?
A. public ownership of all capital
B. central planning
C. minimal government intervention
D. a circular flow of goods, resources, and money
Give this one a try later!
