What is the relationship between marginal utility and total utility? What happens to total utility as marginal utility declines?
What will be an ideal response?
Marginal utility is the change in total utility resulting from a one-unit change in the consumption of a good or service. As marginal utility declines, the additional utility per unit consumed decreases, so total utility rises at a decreasing rate. When marginal utility reaches zero, total utility is at its maximum. If marginal utility continues to decline below a value of zero, so that marginal utility becomes negative, then total utility begins to fall.
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What is the "most favored nation" principle of the WTO?
a. Trading partners may choose a favorite nation to trade with. b. Any nation can refuse to trade with another that is not its most favored nation. c. The WTO has the right to choose the nation that has performed best within the WTO guidelines as its most favored nation. d. Every nation must grant the same rights and treatment to other nations in the WTO as its "most favored nation."
In consumer equilibrium, which of the following is true? a. The marginal utility from the consumption of each good is the same
b. The marginal utility from the consumption of each good is zero. c. The marginal utility from the consumption of the last dollar's worth of each good is the same. d. The total utility from the consumption of each good is the same.