Author Question: The market process ensures that, when all transactions are voluntary, resources get allocated to the ... (Read 63 times)

j.rubin · **on:** Jun 30, 2018

The 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

Question 2

Diminishing marginal utility is best illustrated by which of the following statements?
a. A decrease in the price of hot dogs will cause consumers to buy more hot dogs, because the lowered price has increased their effective real income.
b. A person will receive less satisfaction from consuming four hot dogs than from consuming three hot dogs.
c. A person will receive less added satisfaction from consuming a fourth hot dog in a week than from consuming the third hot dog in a week.
d. If the price of hot dogs declines, people's tastes for hot dogs will increase.