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Question
If marginal utility is negative,
A) total utility increases at a decreasing rate.
B) the consumer considers extra units of the commodity to be a ʺbad.ʺ
C) the consumer will want to consume the unit only if it is free.
D) the consumer likes the commodity, but not as much as he or she once did.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expectA) the quantity demanded is Q 2.B) a surplus will occur.C) price to decline until an equilibrium is achieved at P0.D) consumers to bid against each other for goods and force the price even higher.
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Markets tend to underallocate resources to the production of a good whenA) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
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Which of the following statements is FALSE?
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The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.