Water Has a ________ Marginal Utility and Brings a ________

question 50

Multiple Choice

Water has a ________ marginal utility and brings a ________ consumer surplus; diamonds have a ________ marginal utility and bring a ________ consumer surplus.

• A) small; small; large; large
• B) large; large; small; small
• C) small; large; large; small
• D) large; small; small; large

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Definitions:

Short-Term Assets

Assets that will be converted into cash within one year.

Prepaid Expenses

Payments made for goods or services to be received in the future, recognized as assets on a balance sheet until they are incurred as expenses.

Inventory

The quantity of goods and materials a business holds for the purpose of resale or production.

Short-Term Assets

Assets expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.