The Law of Diminishing Marginal Utility May Be Illustrated by a Person

question 130

Multiple Choice

The law of diminishing marginal utility may be illustrated by a person

• A)buying additional goods after getting a pay raise
• B)eating more twinkies but enjoying them less
• C)giving some of income to a needy person
• D)who spends more hours studying than do his fellow students
• E)buying goods so long as their marginal utility is greater than zero

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Definitions:

Net Asset Value

The per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.

Liquidate Positions

The process of selling securities or other assets to convert them into cash, often done to exit a market or meet financial obligations.

Money Market Mutual Funds

Mutual funds that invest in short-term, high-quality debt securities and are designed to offer investors liquidity and a safe place to invest in the short term.

Commercial Paper

Short-term unsecured debt issued by large corporations.