The Law of Diminishing Marginal Utility

question 82

Multiple Choice

The law of diminishing marginal utility

• A)allows us to make interpersonal utility comparisons.
• B)tells us that an additional dollar is worth less to a millionaire than to a poor person.
• C)tells us the worth of an additional dollar of income.
• D)tells us that an additional dollar of income is worth less than the preceding dollar of income.

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Definitions:

Indirect Quote

A foreign exchange rate quoted as the domestic currency per unit of the foreign currency.

Journal Entry

A record in the accounting ledger that represents a single financial transaction, showing debit and credit accounts affected.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain time period.

Spot Exchange Rates

The current exchange rate at which a currency can be bought or sold for immediate delivery.