An Individual Finds That,as Their Income Increases,their Total Utility Also

question 50

Multiple Choice

An individual finds that,as their income increases,their total utility also increases,but at a decreasing rate.This occurrence can be attributed to:

• A)diminishing marginal utility.
• B)being risk-neutral.
• C)expected values.
• D)efficient allocation of risk.

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Definitions:

Finance Charges

Fees representing the cost of credit or the cost of borrowing, including interest and transaction fees.

Accounts Receivable

Money owed to a company by its customers for goods or services already delivered but not yet paid for.

maturity Value

The amount that will be received at the maturity or expiration date of an investment, representing the principal plus interest.

Notes Receivables

These are written promises for amounts to be received by a business, typically including interest, evidence by a formal instrument.