Marginal Utility Measures the

question 34

Multiple Choice

Marginal utility measures the

• A) total utility from consumption.
• B) additional utility from an additional unit of consumption.
• C) average utility from an additional unit of consumption.
• D) additional cost of an additional unit of consumption.

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Definitions:

Production Possibilities Curve

The Production Possibilities Curve represents the maximum combination of goods or services that can be produced in an economy, given available resources and technology, illustrating the trade-offs and opportunity costs.

Unemployed Resources

Factors of production that are not being utilized to their full capacity, including labor, capital, and natural resources, often indicating economic inefficiency.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing one option over another.

Outboard Motors

Engine units mounted on the outside of the boat's stern, providing propulsion and steering capabilities.