The Fact That a Gallon of Gasoline Commands a Higher

question 148

Multiple Choice

The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that

• A) gasoline is an economic good but water is not.
• B) the marginal utility of gasoline is greater than the marginal utility of a gallon of water.
• C) the average utility of a gallon of gasoline is greater than the average utility of a gallon of water.
• D) the total utility of gasoline exceeds the total utility of water.

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Definitions:

Sails

Large pieces of fabric attached to the mast of a boat or ship, designed to catch the wind and propel the vessel forward.

Passengers

Individuals who are transported in a vehicle but do not operate it, often paying for the service or being accommodated by the operator.

Syllogistic Steps

Sequential logical arguments that involve a major premise, a minor premise, and a conclusion, following the structure of syllogism.

Fugitive

A person who has escaped from captivity or is in hiding to avoid arrest or persecution.