The Principle of Decreasing Marginal Benefit Means That as the Quantity

question 496

Multiple Choice

The principle of decreasing marginal benefit means that as the quantity of a good consumed

• A) increases, its total benefit decreases.
• B) decreases, its marginal benefit decreases.
• C) increases, its marginal benefit decreases.
• D) None of the above answers is correct.

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Definitions:

Economic Effects

The impact of economic activities and policies on the overall condition of the economy, including effects on growth, inflation, and employment.

Government Price Supports

Programs or policies implemented by a government to maintain the market price of a good or service at a certain level.

Farmers' Income

The earnings obtained by farmers for their labor and investment in agricultural activities, which can fluctuate significantly due to market and environmental conditions.

Agribusiness

The business sector encompassing farming and farming-related commercial activities, involving the production, distribution, and marketing of agricultural goods.