Economists Use the Term "Marginal Utility" to Describe the

question 106

Multiple Choice

Economists use the term "marginal utility" to describe the

• A) average utility of each unit of a good consumed.
• B) change in total satisfaction caused by consumption of an additional unit of a good.
• C) price paid for every unit consumed.
• D) inverse of the measure of total utility.
• E) total satisfaction received from consumption of a good.

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Definitions:

Perpetuity

A financial instrument that pays a fixed sum of money indefinitely, with no end date.

Deferral Period

A specified period of time during which payment of a debt, investment, or loan is suspended or delayed.

Compounded Monthly

Interest calculation method where both the initial principal and the accumulated interest are recalculated every month.

Economic Values

The monetary worth of goods, services, or resources based on their utility and their capacity to satisfy wants or needs.