If You Have an Increasing Marginal Utility for Leisure, Then

question 58

Multiple Choice

If you have an increasing marginal utility for leisure, then as you work more to make greater income, your

• A) Total utility for leisure decreases.
• B) Marginal utility for income decreases.
• C) Marginal utility of income varies positively with the money you earn.
• D) Marginal revenue product decreases.

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Definitions:

Market Supply

The total amount of a good or service that producers are willing and able to sell at varying price points, at a given time.

Long Run

An economic phase characterized by the variability of all production inputs and expenses.

Industry Supply Curve

It represents the total quantity of goods or services that producers in an industry are willing and able to supply at various price levels.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service is sensitive to changes in its price.