If Consumption of an Extra Unit of Some Good Generates

question 108

Multiple Choice

If consumption of an extra unit of some good generates a marginal utility of zero,then consumption of that additional unit would mean that total utility would

• A)also be zero.
• B)not change.
• C)be increasing.
• D)be decreasing.
• E)be negative.

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Definitions:

Stock Repurchases

Stock repurchases, also known as share buybacks, occur when a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Dividends

Dividends are a portion of a company's earnings distributed to its shareholders as determined by the company's board of directors.

Ex-Dividend Date

The date on which a stock begins trading without the entitlement to receive the next declared dividend, meaning buyers from this date forward will not receive the dividend.

Common Stock

Shares of a corporation that provide voting rights and entitle the holder to a share of the company's success through dividends and capital appreciation.