Which of the Following Is Descriptive of the Law of Diminishing

question 29

Multiple Choice

Which of the following is descriptive of the law of diminishing marginal utility?

• A) The third hamburger consumed provides less utility than the second hamburger consumed.
• B) The third hamburger is priced higher than the first hamburger.
• C) As price falls,quantity demanded rises,ceteris paribus.
• D) The price of a good rises as the costs of producing that good rise.
• E) none of the above

Recognize the concepts of progressive, regressive, and proportional taxes.

Identify the principle responsibilities of government in managing tax revenues and expenditures.

Distinguish between the efficiency loss of a tax and the tax revenue collected by the government.

Comprehend how taxes impact income distribution and inequality.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Productivity

Productivity measures the efficiency of production in terms of the amount of goods and services produced per unit of labor, capital, or other inputs.

Total Output

The total amount of goods or services produced by a firm or country within a specific period.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.