Which of the Following Statements Is True

question 174

Multiple Choice

Which of the following statements is true?

• A)An extra dollar earned by a millionaire necessarily brings him or her less utility than an extra dollar earned by a poor person.
• B)If marginal utility is constant, then total utility for two units of a good is equal to the marginal utility of the second unit of the good.
• C)The marginal and total utility of a good are the same for the first unit of the good.
• D)Total utility will rise if marginal utility is negative.
• E)a and c

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Definitions:

Consumption

The use of goods and services by households or individuals for personal or collective needs and satisfaction.

Tax Reduction

A decrease in the amount of taxes imposed by a government.

Price

The price anticipated, required, or paid in exchange for a particular item.

Quantity

The amount or number of a material or product available or produced.