A Basic Hypothesis of Marginal Utility Theory Is That the Utility

question 57

Multiple Choice

A basic hypothesis of marginal utility theory is that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases. This hypothesis is known as

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

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Definitions:

Rhythm Method

A form of natural family planning based on tracking the menstrual cycle to predict fertile days to avoid or achieve pregnancy.

Birth Control

A method or device used to prevent pregnancy.

Total Fertility Rate

The average number of children that would be born to a woman over her lifetime in a given population.

Replacement-level Fertility

The birthrate needed for a population to reproduce itself exactly from one generation to the next, excluding any changes due to migration.