If Total Utility Is Increasing as More Units Are Consumed

question 65

Multiple Choice

If total utility is increasing as more units are consumed, then marginal utility must be

• A) increasing.
• B) positive.
• C) increasing at an increasing rate.
• D) decreasing at an increasing rate.
• E) negative.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Market Basket

A collection of goods and services used to track price changes over time for the purpose of calculating inflation or cost of living adjustments.

Consumer Goods

Products that are purchased for consumption by the average consumer.

Discouraged Workers

Individuals who are not actively seeking employment because they believe no jobs are available for them.