The Principle of Diminishing Marginal Utility Says That

question 7

Multiple Choice

The principle of diminishing marginal utility says that

• A) marginal utility is negative as the quantity of the good consumed increases.
• B) total utility decreases as the quantity of the good consumed increases.
• C) total utility increases by smaller and smaller amounts as the quantity of the good consumed increases.
• D) total utility increases by larger and larger amounts as the quantity of the good consumed increases.

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Definitions:

Foot-In-The-Door Effect

A psychological phenomenon where agreeing to a small request increases the likelihood of agreeing to a larger request later.

Self-Perception Theory

A theory suggesting that individuals determine their attitudes and preferences by interpreting the meaning of their own behavior.

Social Facilitation Theory

Social facilitation theory posits that the presence of others significantly impacts an individual's performance, enhancing it on familiar or simple tasks but potentially impairing it on complex or new tasks.

Earned Income

Income generated from the sale of goods or services by an organization, as distinct from donations or grants.