According to the law of diminishing marginal utility, after some point:
A. the more we buy of something, the more it costs.
B. people should spend all of their income on one good.
C. the more we consume of something, the less each additional unit adds to our satisfaction.
D. the more we consume of something, the smaller the total satisfaction received from that good.
Answer: C
Economics
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If the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded
A) a full-employment equilibrium occurs. B) actual GDP equals potential GDP. C) the supply curve of labor is vertical. D) Both answers A and B are correct.
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If the GDP deflator in 2009 was 160 and the GDP deflator in 2010 was 180, then the inflation rate in 2010 was 12.5%
a. True b. False Indicate whether the statement is true or false
Economics