The law of diminishing marginal utility does not hold good when the good is free or priced at zero dollars

When the ultimatum game is played for larger rather than smaller amounts of money, behavioral economists have found that when the proposed splits are very uneven:

A. responders are much more likely to accept the offer because of the amount of money involved. B. responders are no more likely to accept the offer if they consider the split to be unfair. C. responders are much less likely to accept the offer because their sense of unfairness is heightened with larger amounts of money. D. responders will accept offers at a higher rate but will exact greater emotional penalties on the proposer.

The market system automatically corrects a surplus condition in a competitive market by:

A. Raising the price of the commodity in question while increasing the quantity demanded B. Raising the price of the commodity in question while decreasing the quantity demanded C. Reducing the price of the commodity in question while increasing the quantity demanded D. Reducing the price of the commodity in question while decreasing the quantity demanded