Because the Height of the Demand Curve Measures the Marginal

question 210

Multiple Choice

Because the height of the demand curve measures the marginal value of the good to consumers, the fact that a demand curve slopes downward to the right illustrates that

• A) as more of a product is consumed, consumers will value additional units less.
• B) as more of a product is consumed, consumers will value additional units more.
• C) the value of additional units of the good is unrelated to the amount consumed.
• D) the cost of production for a good generally rises as more of it is produced.

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Definitions:

Cash Balance Plan

A type of defined benefit retirement plan where employee benefits are expressed as a hypothetical account balance, making it resemble a defined contribution plan.

PBGC

Pension Benefit Guaranty Corporation, a U.S. federal agency responsible for protecting retirement incomes by insuring private-sector defined benefit pension plans.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry.

Healthcare Benefits

Insurance or services provided by employers or governments to cover medical expenses and health-related issues for individuals.