Marginal Utility Is the

question 296

Multiple Choice

Marginal utility is the

• A) total satisfaction that a person gets from the consumption of all of the units of a good consumed.
• B) change in satisfaction that results from a one-unit increase in the quantity of a good consumed.
• C) maximum price that a consumer is willing to pay for an additional unit of a good.
• D) additional cost to a consumer when an additional unit of a good is consumed.

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Definitions:

Income Tax

Income tax is a tax levied by governments on individuals or entities based on their income or profits, with rates varying according to income levels.

Consumption

Households utilizing products and services for their needs.

Horizontal Equity

The principle that individuals with similar income and ability should be treated equally by the taxation system, ensuring fairness.

Economic Income

The total value of all earnings received over a period of time, including wages, rental income, interest, and profits.