Maria buys a cup of coffee every day after her economics class. The first cup of coffee always tastes wonderful. The second does not taste quite as good as the first. The third does not taste quite as good as the second. Maria is experiencing
A) irrational behavior.
B) the law of diminishing marginal utility.
C) the income effect.
D) the substitution effect.
Answer: B
Economics
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A) zero. B) positive. C) negative. D) indeterminate. E) undefined.
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When the economy is operating at full employment, the natural unemployment rate consists of only
A) cyclical unemployment. B) frictional and structural unemployment. C) frictional and cyclical unemployment. D) structural and cyclical unemployment.
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