If the Marginal Utility Per Dollar Is Not the Same

question 70

Multiple Choice

If the marginal utility per dollar is not the same for each good,the consumer could ________ her utility by spending ________ on goods for which the marginal utility per dollar is higher.

• A) increase; more
• B) increase; less
• C) decrease; more
• D) minimize; more

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Definitions:

Cash Coverage Ratio

A liquidity ratio that measures a company’s ability to pay off its debt obligations with its cash and cash equivalents.

Tax Rate

The percentage of income or value of a transaction that is required to be paid as tax to a governmental authority.

Interest Paid

The amount paid by a borrower to a lender in compensation for the use of borrowed money, typically expressed as an annual percentage of the principal.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its current income. It's calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses.