The Law of Diminishing Marginal Utility Does Not Apply to Goods

question 1

True/False

The law of diminishing marginal utility does not apply to goods that a person really enjoys.

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Definitions:

Living Standards

The volume of capital, pleasantries, commodities, and indispensable resources available to a defined economic group or territorial area.

Market Economy

is an economic system in which supply and demand from consumers direct the production of goods and services.

Socially Desirable Outcome

An economic or social condition that benefits the majority of the community, considering factors like efficiency, equity, and the welfare of all participants.

Selfish Interests

Motivations based on personal gain or benefits rather than considering the welfare of others.