If a Good Is Offered to You Free of Charge

question 84

Multiple Choice

If a good is offered to you free of charge, then you

• A)never stop consuming it
• B)stop consuming it when its marginal utility begins to fall
• C)stop consuming it when its marginal utility begins to increase
• D)stop consuming it when its marginal utility equals 0
• E)stop consuming it when its total utility equals 0

---

Definitions:

Taxable Income

The amount of income that is subject to income tax after deductions and exemptions.

Book Income

The income reported by a company in its financial statements, calculated based on accounting rules rather than tax regulations.

Taxable Income

The portion of an individual's or company's income that is subject to taxes according to government regulations.

Income Measurement

The process of determining the monetary amount of the income earned by a business during a specific period.