Marginal utility is always ______ total utility.

Maurice loses his job and decides to sit on the beach rather than looking for work the next few months. Other things the same, the unemployment rate

a. increases, and the labor-force participation rate is unaffected. b. increases, and the labor-force participation rate decreases. c. decreases, and the labor-force participation rate increases. d. decreases, and the labor-force participation rate decreases.

When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance, the insurance market is said to face the problem of

A) moral hazard. B) adverse selection. C) asymmetric information. D) economic irrationality.