Reference no: EM13986054

1. Diminishing marginal utility means that

a. as you consume more of a good, other things constant, the total satisfaction you obtain from consuming this good tends to fall

b. as you hire more labor, other things constant, the total amount produced begins to fall

c. as you hire more labor, other things constant, the marginal product begins to fall

d. as you consume more of a good, other things constant, the additional satisfaction you obtain from each additional unit of the good tends to fall

e. as you consume more of a good, other things constant, the extra satisfaction you obtain from each extra good becomes negative

2. The "invisible hand" described by Adam Smith refers to the

a. allocative role of markets and market forces

b. importance of government intervention and central planning

c. actions of successful entrepreneurs in directing the economy

d. role of monopolized industries in leading the nation

e. value of religious belief in creating an ideal economy