Compared with Socialist Economic Systems, Capitalist Economic Systems Generally Produce

question 121

Multiple Choice

Compared with socialist economic systems, capitalist economic systems generally produce

• A) more equality in terms of income.
• B) less equality in terms of income.
• C) about as much equality in terms of income.
• D) absolute equality because they are required by law to pay all people exactly the same income.

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Definitions:

Marginal Utility

The incremental utility or happiness a consumer derives from acquiring and using an additional unit of a good or service.

Utility Per Dollar

A measure of the satisfaction or usefulness obtained from purchasing goods or services relative to the amount of money spent.

Diminishing Marginal Utility

The principle stating that as more of a good or service is consumed, the marginal benefit of additional units will decline.

Utility Maximization

The process by which consumers adjust their consumption to achieve the highest level of satisfaction from their available resources.