tal satisfaction as more units of the good are consumed.b.refers to the fall in additional satisfaction created by consumption of more and more units of a good.c.refers to the idea that total utility eventually becomes negative.d. all of the above.e. None of the above.29.The MUX/MUY is twelve and the PX/PY is eight, so the consumer should buya.less X and more Y.b.more X and less Y.c.more X and more Y.d.less X and less Y.30.The law of diminishing marginal utility allows us to conclude thata.supply curves always slope upward.b.total utility will always increase by an increasing amount as consumption increases.c.a consumer will always buy positive amounts of all goods.d.demand curves always slope downward and to the right.31.On which of the following goods would a price change have the largest income effect?a.a magazineb.gasolinec.clothingd.a car32. The conventional bowed-out shape of the production possibilities curve impliesa. producers are unable to utilize specialized resources efficiently.b. shifting production from one good to another leads to increasingopportunity costs.c. shifting production from one good to another leads to decreasing opportunity costs.d. when producing two goods, output is maximized when some of each good is produced, rather than producing all of one good or all of the other good. e. none of the above.33.Developing a model of an economy means answering the question(s) of:a.what to produce.b.how to produce.c.for whom to produce.d.what to produce, how to produce and for whom to produce.e.Only what to produce and how to produce, since distribution is not the task of economics.34.Every year during the holidays there seems to be a great demand for some particular "hot" toy. This is an example of the effect of _________ on demand.a.tastes and preferencesb.expectationsc.incomed.prices of other goodse.wealth35.A market is in equilibrium when there is:a.excess demand.b.excess supply.c.a shortage.d.a surplus.e. Non...
