If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause
A) total utility to decrease.
B) a consumer to get no satisfaction from consuming apples.
C) a consumer's total utility to increase.
D) a consumer to go beyond her optimal consumption of apples.
Answer: C
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What is a reference point?
A) the value of a good on the black market B) the point from which an individual makes a consumption decision C) a subjective valuation of a good D) the minimum price that an individual would sell a good that she currently owns E) none of the above
If the Dow Jones Industrial Average is currently at 10,000 and the price of one stock included in the index increases by $10, the Dow Jones Industrial Average will:
A. increase by 10.0%. B. increase by 1.0%. C. increase by 0.1%. D. not change; it is a value-weighted index.