If the Price of a Good Falls,_____

question 148

Multiple Choice

If the price of a good falls,_____

• A)the marginal utility of per dollar spent on consuming a specific unit of that good falls.
• B)the marginal utility of per dollar spent on consuming a specific unit of that good remains unchanged.
• C)the marginal utility of per dollar spent on consuming a specific unit of that good rises.
• D)the total utility from consuming a specific unit of that good decreases.
• E)the total utility from consuming a specific unit of that good remains constant.

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Definitions:

Laissez-faire

Laissez-faire is an economic philosophy advocating minimal government intervention in the business affairs of private individuals and enterprises.

Command Economies

Economic systems where the government or central authority controls all major aspects of production and distribution of goods and services.

North Korea

An East Asian country officially known as the Democratic People's Republic of Korea, noted for its centralized economy and autocratic government.

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.