Marginal utility
A) at first rises and then declines as a person consumes more of a good or service.
B) can be thought of as being the equivalent to total utility.
C) equals the total satisfaction from consumption of goods and services.
D) is stable, but then as a person consumes more of a good or service, has a propensity to increase.
Answer: A
You might also like to view...
The difference between an absolute price and a relative price is that:
a. absolute prices are based on costs of production, relative prices are based on market exchange. b. absolute prices are in terms of currency, relative prices are in terms of another good. c. absolute prices are in terms of another good, relative prices are in terms of currency. d. absolute prices never change, relative prices change with inflation.
The balanced-budget multiplier is equal to the
A) the autonomous spending multiplier. B) government spending multiplier plus the tax multiplier. C) simple multiplier minus the tax multiplier. D) government spending multiplier plus the simple multiplier.
Jose and Julia were discussing the necessary components to achieve economic growth. Jose stated that the economy must include free markets, specialization and trade, and an ethical judicial system. Julia reminded Jose that another key component is
A) property rights. B) freedom of speech. C) a guaranteed high rate of return on savings. D) freedom of religion. E) democracy.
To be considered well capitalized, a bank's leverage ratio must exceed
A) 10%. B) 8%. C) 5%. D) 3%.