A fundamental notion of economic analysis is that all households and firms must make choices because of __________.

Group of answer choices

scarcity

abundance

popularity

income

The process by which a consumer adjusts consumption, given a budget constraint and a set of prices, in order to attain the highest total amount of satisfaction is called __________.

Group of answer choices

budget maximization

budget utilization

utilization

utility maximization

When the fourth cup of coffee is expected to provide less additional pleasure than the third cup of coffee, this is called the principle of __________.

Group of answer choices

diminishing returns

total utility

diminishing marginal utility

long-acting utility

What are the two characteristics of public goods?

Group of answer choices

productivity and rivalry

nonexclusivity and nonrivalry

exclusivity and nonrivalry

exclusivity and rivalry

__________ are costs or benefits imposed on economic units without compensation.

Group of answer choices

Externalities

Internalities

Market prices

Implied effects

Which of the following scenarios would most likely involve property law?

Group of answer choices

A trespasser fell into Jack's Japanese koi pond.

An arrogant waiter dumped orange juice down Jack's back.

A rock star failed to appear at a concert for which Jack bought tickets.

Jack's microwave oven would not defrost his frozen dinners.

The Coase theorem says that, if property rights are clearly defined and the number of parties involved is small, __________.

Group of answer choices

there will be market failure

taxes can correct for any market failure

the market will internalize any externalities that are present

new laws will be required to correct for any externalities