The law of diminishing marginal utility implies that
A. supply curves always slope upward and to the right.
B. a consumer will always buy positive amounts of all goods.
C. demand curves always slope downward and to the right.
D. total utility will always increase by an increasing amount as consumption increases.
Answer: C
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Suppose the equilibrium quantity of labor hired decreases and the equilibrium real wage rate increases. All else constant, this situation will also result in
A) more government outlay for the unemployed. B) higher output prices. C) lower output prices. D) fewer benefits for those still unemployed.
Measurement of the official poverty level
a. includes all transfers b. excludes all transfers c. includes cash transfers but not in-kind transfers d. includes in-kind transfers but not cash transfers e. is always measured in real rather than nominal terms