Which of the following is NOT an economic function of government?
A) providing a legal system
B) ensuring economic stability
C) providing government-inhibited goods
D) promoting competition
Answer: C
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The principle of diminishing marginal utility says that
A) marginal utility is negative as the quantity of the good consumed increases. B) total utility decreases as the quantity of the good consumed increases. C) total utility increases by smaller and smaller amounts as the quantity of the good consumed increases. D) total utility increases by larger and larger amounts as the quantity of the good consumed increases.
A straight-line downward-sloping demand curve has a price elasticity of demand which:
A. Decreases as price decreases B. Increases as price decreases C. Is zero at all prices D. Is unitary at all prices