Diminishing Marginal Utility Means That as More of a Good

question 52

Multiple Choice

Diminishing marginal utility means that as more of a good is consumed,

• A) the consumption of some other good must diminish.
• B) the price of the good rises.
• C) the utility of an additional unit decreases.
• D) more income is spent.
• E) the price of the good falls.

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Definitions:

Unrealized Holding

Gains or losses on investments that have not yet been sold and so are not yet reflected in the income statement.

Debt Securities

Financial instruments representing money borrowed that must be repaid, which include bonds, notes, and bills.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, a key indicator of financial health.

Consolidation

The process of combining the financial statements of several departments or subsidiaries into a single set of statements for the entire entity.