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:

Management

The process of dealing with or controlling things or people, often within an organization, including planning, decision making, organizing, leading, and controlling.

Motivation

Stimulation and inspiration to move; the leadership task of mobilizing people with different ideas, skills, and values to achieve a common mission; the experience of physical and emotional needs, progressing from basic needs for survival and security, to social needs for belonging and respect, to the complex need for fulfillment. See energize and empowerment.

Honesty

A moral character trait that involves being truthful, transparent, and free from deceit or theft.