The Principle of Diminishing Marginal Utility States That

question 47

Multiple Choice

The principle of diminishing marginal utility states that:

• A)individuals rarely maximize their total utility, as it continually diminishes over time.
• B)the change in total utility that comes from consuming one additional unit of a good or service fluctuates depending on how many units are consumed in total.
• C)the additional utility gained from consuming successive units of a good or service tends to be smaller than the utility gained from the previous unit.
• D)the additional utility gained from consuming different bundles of goods and services tends to be smaller than the utility gained from consuming just one bundle of goods and services.

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Definitions:

Political

Relating to the government, public affairs, or the administration of the state or other policy-making entities.

Economic

Refers to the science concerned with the production, distribution, and consumption of goods and services.

Truthfulness

The quality of being honest or truthful in one's statements or actions.

Fidelity

The quality of being faithful or loyal to commitments or promises.