Which of the following defines marginal utility?
A. the total satisfaction or happiness received from the consumption of a good, service, or combination of goods and services
B. the additional satisfaction or happiness received from the consumption of an additional unit of a good or service
C. the maximum amount of satisfaction or happiness derived from consuming a product
D. the change in total utility divided by the price of a product
Answer: B
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The coupon rate of a bond is equal to
A) the interest rate. B) the coupon payment. C) the interest payment. D) the face value.
The price of one country's currency in terms of another country's currency is called the
A) exchange rate. B) interest rate. C) Dow Jones industrial average. D) prime rate.
Giving up consumption today for consumption tomorrow accelerates economic growth by
A) having the economy produce no consumer goods.
B) increasing saving out of disposable income.
C) increasing the expected rate of inflation.
D) rapid expansion of the money supply.
In the long run, a higher government budget deficit causes
A. a decrease in private spending while equilibrium real GDP remains unchanged. B. no change in private spending but a decrease in equilibrium real GDP. C. an increase in both private spending and equilibrium real GDP. D. a decrease in both private spending and equilibrium real GDP.