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:

Income Distribution

Describes how a country's total GDP is spread amongst its population, affecting wealth disparity and economic stability.

Lifetime Distribution

The distribution of a certain attribute, such as income or wealth, over the lifespan of an individual or system.

Gini Ratios

A measure of income inequality within a population, ranging from 0 (complete equality) to 1 (complete inequality).

Income Inequality

Income inequality describes the uneven distribution of income within a population, leading to disparities in living standards and economic opportunities.