Utility Is The

question 16

Multiple Choice

Utility is the:

• A)difference between a firm's total revenue and its total economic cost.
• B)good not adequately provided by a free market and usually provided by the government.
• C)satisfaction consumers derive from their consumption of goods and services.
• D)lowest price that buyers are willing to pay for a given quantity of a good.

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Definitions:

Premium

An amount paid for an insurance policy or an additional cost above the nominal value of a security or financial instrument.

TIPS Bond

Treasury Inflation-Protected Securities, a type of U.S. treasury bond that is indexed to inflation to protect investors from the negative effects of rising prices.

Nominal Rate of Return

The yield from an investment prior to considering inflation adjustments.

Treasury Bond

A long-term, fixed-interest government security with a maturity of more than ten years, considered a safe investment.