How are total and marginal utility related?
What will be an ideal response?
Marginal utility is the change in total utility from consuming one more unit of a good.
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A statistical technique used to isolate the individual effects of a number of factors on a single outcome is called
A) the audit method. B) regression analysis. C) statistical discrimination. D) taste-based discrimination.
Which of the following is not appropriate, if we live in a world of fixed exchange rates?
A) monetary approach to the exchange rate B) elasticities approach C) monetary approach to the BOP D) absorption approach
If a corporation issues bonds that it cannot sell, this is an indication that
A. The coupon rate is too low. B. Dividends are too low. C. The opportunity cost of the bonds is too low. D. Expectations of future sales are low.
The part of consumption that does NOT depend upon the level of disposable income is
A. autonomous consumption. B. savings. C. saving. D. average propensity to consume.