-In the Table Above, Which of the Following Is TRUE

question 195

Multiple Choice

-In the table above, which of the following is TRUE?

• A) Jim and Sally have increasing marginal utility.
• B) Jim has increasing marginal utility and Sally has diminishing marginal utility.
• C) Jim has diminishing marginal utility and Sally has increasing marginal utility.
• D) Jim and Sally have diminishing marginal utility.

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Definitions:

Preferences

In economics, it refers to the ordering of different alternatives by individuals based on their satisfaction, utility, or happiness.

Compensating Variation

A measure in economics of the amount of money one would need to reach their original utility level after a change in price or income.

Equivalent Variation

An economic measure of the amount of money that leaves an individual equally well off, given changes in prices or utility.

Income

The financial gain received by an individual or entity, typically measured over a certain period, resulting from labor, investments, or other sources.