15 Questions
According to marginalism, why is the price of diamonds higher than that of water?
Because diamonds have greater marginal utility than water
What is the central concept of marginalism?
Marginal utility
What role did marginal physical productivity play in the explanation of cost according to marginalists?
Secondary role
Which tradition emerged from British marginalism and gave marginal rates of substitution a more fundamental role in analysis?
Neoclassical tradition
Is marginalism an integral part of mainstream economic theory?
Yes
Which field of study focuses on the production, distribution, and consumption of goods and services?
Economics
What does microeconomics analyze?
The behavior of individual agents and markets
What does macroeconomics analyze?
The behavior of economic agents
What is the distinction between positive economics and normative economics?
Positive economics describes 'what is', while normative economics advocates 'what ought to be'
What is the distinction between economic theory and applied economics?
Economic theory focuses on theoretical concepts, while applied economics focuses on practical applications
Which social science studies the production, distribution, and consumption of goods and services?
Economics
What does microeconomics analyze?
The behavior of economic agents
What does macroeconomics analyze?
The economy as a system
What is the distinction between positive economics and normative economics?
Positive economics describes 'what is', while normative economics describes 'what ought to be'
What are the broad distinctions within economics?
All of the above
Test your knowledge of marginalism and its role in explaining the value of goods and services. Explore the concept of marginal utility and understand why certain products, like diamonds, command higher prices than others, such as water. Challenge yourself with this quiz on economics and gain a deeper understanding of how marginalism influences our understanding of value.
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