4 - An increasing number of individuals have come to...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
An increasing number of individuals have come to believe that consuming less red meat represents an improvement in their diet. As a result: ( ) A) there is a movement down the demand curve for beef. (X) B) there is a leftward shift of the demand curve for beef. ( ) C) there is a movement up the demand curve for beef. ( ) D) the demand curve for beef shifts to the right. Feedback: The demand for meat would decrease so the demand curve would shift to the left. In economics elasticity means ______. (X) A) responsiveness ( ) B) satisfaction ( ) C) output ( ) D) pleasure Feedback: The word elasticity is synonymous with responsiveness or sensitivity. Teachers generally earn less than top athletes. As a result, this means: ( ) A) athletes are better people than teachers. ( ) B) the marginal value of one more top athlete is greater than the marginal value of one more teacher. ( ) C) It is clear that the total value derived from the services of all top athletes is larger than the total value derived from all teachers. (X) D) very few athletes have the skill to become a top athlete, which tends to reduce the marginal value of a top athlete. Feedback: Because athletes earn more, their marginal value is greater than the marginal
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
value of teachers. If you eat at a fixed price buffet and act in accordance with the principle of diminishing marginal utility, the following statement will be true: (X) A) You would eat the same amount you would if you paid per portion. ( ) B) You would continue to eat so long as the marginal utility from an additional portion exceeded zero. ( ) C) You would eat more than if you paid per portion but you would definitely stop eating before the marginal utility reached zero. ( ) D) You would eat less than if you paid per portion. Feedback: One should keep consuming a good as long as the marginal utility is positive. Assuming the price elasticity of demand among teenagers for cigarettes is 0.6: ( ) A) the demand for cigarettes must be price elastic. ( ) B) if the price of cigarettes were to increase by 20%, the quantity demanded would not change since teenagers would simply pay the extra money. (X)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

4 - An increasing number of individuals have come to...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online