The Idea That the Utility a Consumer Derives from Successive

question 30

Multiple Choice

The idea that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases is known as

• A)the utility theory of demand.
• B)utility maximization.
• C)diminishing marginal utility.
• D)the paradox of value.
• E)diminishing total utility.

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Definitions:

Keynesian Economists

Economists who believe in the economic theories of John Maynard Keynes, emphasizing the role of government intervention in the economy.

Private Sector

The private sector encompasses businesses and activities not owned or directly managed by the government.

Supply-Side Economists

Economists who believe that reducing taxes and decreasing regulation will stimulate economic growth by encouraging investment, production, and employment.

Marginal Tax Rates

The rate at which the next dollar of taxable income will be taxed, reflecting the percentage of additional income that is paid in tax.