The lowest of the federal or state minimum wage levels prevails in each state.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2If total utility is increasing as more of a good is consumed:
a. marginal utility must be decreasing.
b. marginal utility must be increasing at an increasing rate.
c. marginal utility is positive.
d. both (b) and (c) are true.
QUESTION 3Transfer earnings of a factor is equal to its:
a. economic rent.
b. explicit cost.
c. actual earnings.
d. overhead cost.
e. opportunity cost.
QUESTION 4In the United States, there is a federal minimum wage that is followed by each state.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Which of the following violates the law of diminishing marginal utility?
a. Phil's marginal utility from drinking another beer remains positive as he drinks more at a party.
b. Phil's marginal utility from drinking becomes negative after 6 beers at a party.
c. Phil's total utility from drinking 5 beers at a party is greater than his total utility of drinking 3 beers at a party.
d. The more beer Phil drinks, the more he enjoys the next one.
QUESTION 6The more inelastic the supply of a particular resource:
a. the higher are its transfer earnings.
b. the higher is its economic rent.
c. the higher are its total earnings.
d. the higher is the elasticity of demand for the resource.
e. the lower is the elasticity of demand for the resource.
QUESTION 7The market process ensures that, when all transactions are voluntary, resources get allocated to the use where they are valued the most.
a. True
b. False
Indicate whether the statement is true or false
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