Suppose you go out with your friend for coffee and donuts at the local donut store. The first donut you eat tastes incredibly good. The second one also tastes pretty good. The third donut seems just okay. With the fourth donut you are turning somewhat green. The fifth donut makes you sick. Your friend, an economist, describes your experience as the principle of:
a. utility maximization.
b. irrationality in consumer behavior.
c. instant gratification.
d. differing tastes and preferences.
e. diminishing marginal utility.
e
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Hogrocket, which developed the Tiny Invaders game for the iPhone, found that to maintain sales in a profitable competitive market, the price of a product
A) will usually rise. B) will usually remain stable. C) will eventually fall to zero. D) will usually fall.
Which elements of GDP were affected by the financial crisis and the lack of available credit?
a. consumption and business investment only b. consumption and government spending only c. consumption, business investment and government spending only d. consumption, business investment, government spending and imports/exports