Which of the Following Best Explains Why Most People Don't

question 171

Multiple Choice

Which of the following best explains why most people don't consume units of goods to the point that their marginal utility falls to zero?

• A)If marginal utility is falling, then total utility is falling.
• B)Consumers face budget constraints that limit how much they can purchase.
• C)Governments tend to limit how much of a good a person is allowed to consume.
• D)The price of a good tends to rise as an individual attempts to purchase more.

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Definitions:

Unemployment

The total number of people over 16 who are ready, willing, and able to work, who have been unsuccessfully seeking employment.

Closed Shop Agreement

A labor agreement requiring employees to be members of a specific union as a condition of being hired and to remain in the union for the duration of their employment.

Wages

Compensation provided to employees for their work, usually determined on the basis of hours, days, or the amount of work completed.

Labor Demanded

The total amount of labor hours that employers want to hire at a given wage rate, over a certain period.