A Rational Consumer Should Not Consume More of a Good

question 52

Multiple Choice

A rational consumer should not consume more of a good when:

• A) total utility is decreasing.
• B) marginal utility is diminishing.
• C) the price is high.
• D) income is decreasing.

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Definitions:

Calendar Quarter

A period of three months on the Gregorian calendar that is used in business and finance to split the year into four parts.

Gross Pay

The total amount of money an employee earns before any deductions are taken out such as taxes or retirement contributions.

FICA-Medicare

A federal tax in the United States deducted from workers' paychecks to fund the Medicare program, which provides health insurance to individuals who are 65 years of age or older or who meet other specific criteria.

State Unemployment Funds

Reserves maintained by individual U.S. states to provide unemployment benefits to eligible laid-off workers.