You participate in a taste test for a new protein supplement called "Kapow." You are given five consecutive one ounce vials of the supplement and after consuming each vial you are asked to note your reaction
You consume the first vial and your response is: "Hmmm, quite good!" After the second, you say, "Not bad at all." After the third, you note, "It's alright." and after the fourth you wince, "No more, the after-taste is getting to me. I need water." What economic principle does this scenario illustrate? Define the principle.
It illustrates the law of diminishing marginal utility which states that consumers experience diminishing additional satisfaction as they consume more of a good or service during a given period of time.
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The account that records changes in the U.S. government's holdings of foreign currency is the
A) capital and financial account. B) official settlements account. C) current account. D) U.S. official reserves account.
Which of the factors would decrease the rate of frictional unemployment?
a. an increase in the number of jobs available due to an increase in GDP b. increased short-term unemployment benefits c. improvements in technology that make skills which were once valued by employers obsolete d. the advent of the Internet, which makes finding available jobs easier