Which best expresses the law of diminishing marginal utility?
A. The more of a product is consumed, the smaller is the total utility from the product
B. The less of a product is consumed, the greater is the marginal utility of the product
C. The more of a product is consumed, the greater is the total utility from the product
D. The less of a product consumed, the smaller is marginal utility of the product
B. The less of a product is consumed, the greater is the marginal utility of the product
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Which of the following statements is false?
a. In a competitive market, the price mechanism encourages conservation of a depletable resource. b. As the price of a depletable resource rises, its known reserves often increase. c. Prices of depletable resources have risen in the twentieth century primarily because resource producers have exercised monopoly or oligopoly power. d. Shortages of depletable resources occur primarily when governments or others interfere with the price mechanism.
You are expecting to receive $3,500 at some time in the future. Which of the following would unambiguously increase the present value of this future payment?
a. Interest rates rise and you get the payment sooner. b. Interest rates rise and you have to wait longer for the payment. c. Interest rates fall and you get the payment sooner. d. Interest rates fall and you have to wait longer to get the payment.