Assuming That the Marginal Utility of Wealth Diminishes Implies That

question 124

Multiple Choice

Assuming that the marginal utility of wealth diminishes implies that

• A) you have more total utility with $100 than with $1,000.
• B) you have more total utility with $1,000 than with $1,001.
• C) an additional dollar increases your total utility more if you only have $100 than if you have $1,000.
• D) an additional dollar does not increase your total utility regardless of your wealth.

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Definitions:

Contractual Rights

Rights that arise out of agreements between parties, granting specific entitlements or obligations as delineated in the contract.

Express Provision

An express provision is a clause or term in a contract or legal document that is explicitly stated, leaving no room for misunderstanding or interpretation.

Personal Nature

Characteristics or activities that belong to or are intended for a specific individual, often relating to private or intimate aspects of life.

Donee Beneficiary

In contract law, a person who benefits from a contract made between two other parties, where the intention is to gift the benefit or performance.