Water is essential to life while diamonds, while beautiful, are not essential to life. In the marketplace, diamonds are very expensive while water is relatively cheap. We can resolve this paradox by focusing on
a. total utility rather than average utility
b. average utility rather than marginal utility
c. marginal utility rather than total utility
d. total utility rather than marginal utility
e. average utility rather than total utility
C
Economics
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The difference between GDP and disposable income is
A) net taxes. B) unplanned investment spending. C) national income. D) actual investment spending.
Economics
A movie theater raises ticket prices from $12 to $14 in order to raise revenues. The theater's management is assuming the absolute value of the price elasticity of demand for tickets is
A. equal to 1. B. less than 1. C. infinity. D. greater than 1.
Economics