The law of diminishing marginal utility applies to goods with negative income elasticities; it does not always apply for goods with positive income elasticities

According to the special interest theory, the licensing of beauticians would be

a. desired by consumers in order to promote the public interest b. desired by beauticians in order to promote the public interest c. discouraged by all beauty salons, large or small d. desired by some beauticians in order to restrict entry into their profession e. done strictly at the initiative of the government

Refer to the given information. If the members of the underground economy are presently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by about:

A.  0 percentage points.
B.  2 percentage points.
C.  5 percentage points.
D.  6 percentage points.