The Law of Diminishing Marginal Utility Says That

question 137

Multiple Choice

The law of diminishing marginal utility says that

• A)the marginal utility gained by consuming equal successive units of a good will decline as the amount consumed increases.
• B)the more of a particular good one consumes, the greater is the utility received from the consumption of that good.
• C)the marginal utility gained by consuming equal successive units of a good will increase as the amount consumed increases.
• D)the more of a particular product one sells, the less utility one receives from selling.

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Definitions:

Past-Due Account

An account that has not been paid by the due date, typically relating to receivables or loans.

Maturity Date

The date on which a financial obligation or investment becomes due for payment or is settled.

Interest Payment

The payment made by a borrower to a lender as compensation for the use of borrowed money.

Four-Month Note

A promissory note or financial instrument that matures or comes due in four months.