The Total Value That Doug Places on His Consumption of Computer

question 96

Multiple Choice

The total value that Doug places on his consumption of computer games equals

• A) price times marginal value.
• B) his marginal utility multiplied by quantity demanded.
• C) the total amount he pays for all the games he purchases.
• D) his total expenditure on computer games plus his consumer surplus.
• E) the price multiplied by quantity demanded.

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Definitions:

Nominal Interest Rate

The percentage increase in money that borrowers pay lenders, not adjusted for inflation.

Inflation

The pace at which prices for various goods and services climb, diminishing the value of money to buy them.

Storage Costs

Expenses associated with keeping goods stored in a warehouse or other facility until they are sold or used.

Interest Rate

The interest rate a borrower incurs for the money lent to them by a lender.