The Principle of Diminishing Marginal Utility Says That as You

question 57

Multiple Choice

The principle of diminishing marginal utility says that as you consume more of an item, beyond some point the:

• A) additional units of consumption will yield more units of utility than the previous units.
• B) total satisfaction will decrease.
• C) additional units of consumption will yield fewer additional units of utility than the previous unit.
• D) price of additional units of consumption will be less than the price of the previous unit.

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Definitions:

Population Growth

The increase in the number of individuals in a population over time.

Investment Spending

Expenditures on new capital assets by businesses and the government, aiming to increase future productive capacity.

DVCs

Stands for Developing Countries, referring to nations with lower levels of industrialization and lower Human Development Index than developed countries.

Political Instability

The likelihood of significant change in the governing framework of a country, which can include shifts in government, policy upheavals, or civil unrest.