Consumers Do Not Buy as Many Units of Each Good

question 302

Multiple Choice

Consumers do not buy as many units of each good as they want because

• A) of the law of diminishing marginal utility.
• B) they have limited incomes.
• C) they do not know what they want in all situations.
• D) eventually marginal utility equals zero.

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Definitions:

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset during the lease term.

Constructively Capitalize

The accounting practice of recognizing an expenditure as a fixed asset and amortizing it over time, despite not being capitalized in a traditional sense.

Operating Leases

A pact that grants permission to use a property without bestowing ownership rights of the said asset.

Long-Term Debt Rate

The interest rate applied to loans or borrowings with a maturity date extending beyond one year.