The Principle of Diminishing Marginal Utility Implies That the

question 288

Multiple Choice

The principle of diminishing marginal utility implies that the

• A) marginal utility of a product is negative.
• B) total utility from a product is also diminishing as more units are consumed.
• C) rate of change of total utility is diminishing as more units are consumed.
• D) rate of change of marginal utility is very low as more units are consumed.

---

Definitions:

Cyclical Unemployment

Unemployment that rises during economic downturns and falls when the economy improves.

Seasonal Unemployment

Joblessness linked to seasonal variations in demand or supply of labor in certain industries.

Cyclical Unemployment

A type of unemployment that relates to the cyclical trends in the economy, fluctuating with the business cycle's contraction and expansion phases.

Automobile Industry

A sector of the economy focused on the manufacturing, design, marketing, and selling of motor vehicles.