1. A good for which the demand rises as income falls – an inferior good is 2. Accounting profit is the difference between total revenue and explicit costs – which of the following statements is true 3. An implicit cost is a cost that represents the value of resources used in production for which no actual monetary payment is made – which of the following statements is true 4. An increase in the price of one will cause an increase in the demand for the other – if two goods are substitute goods 5. Because we need water to live and there is so much of it – we would expect total utility of water to be high, but its marginal utility to be low. Why? 6. Cannot be changed as output changes in the short run – a fixed input is an input whose quantity 7. Change in total utility a person derives from the consumption of a good divided by the change in the quantity of the good consumed – marginal utility is defined as the 8. Demanded; the price of another good – Cross elasticity of demand measures the responsiveness of changes in the quantity ___ of one to changes in ___ 9. Elastic – if the percentage change in quantity demanded is greater that the percentage change in price, demand is 10. Explicit cost – a cost that is incurred when an actual monetary payment is made is an ___ cost 11. Fixed costs plus variable costs – total costs are 12. Fixed costs remain constant in the short run and its variable costs rise – as a firm produce more units of a good, its 13. Greater than zero – income elasticity of demand for a normal good is always 14. Greater; fall – economies of scale are said to exist when inputs are increased by some percentage and output increases by a ___ percentage, causing unit cost to ____ 15. Law of diminishing marginal returns – “As additional units of a variable input are added to a fixed input, eventually