Which of the Following Is True

question 191

Multiple Choice

Which of the following is true?

• A) The law of diminishing marginal utility is seldom verified in economic analysis.
• B) The law of diminishing marginal utility is never verified in economic analysis.
• C) The law of diminishing marginal utility has been proven to be true in economic analysis.
• D) The law of diminishing marginal utility has never been proven true, but it is verified by economists as consistent with the analysis of real-world demand.

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Definitions:

8% Bond

A bond that pays an annual interest rate of 8% to its holders.

Current Yield

The annual return of a bond, expressed as a percentage of its current market price.

6 ¾% Bond

A debt security issued with an interest rate of six and three-quarters percent, denoting the annual return to investors.

Current Yield

A financial ratio that measures the annual income (interest or dividends) from an investment as a percentage of the current price of the security.