As More of One Good Is Consumed, the Marginal Utility

question 91

Multiple Choice

As more of one good is consumed, the marginal utility gained _____ the marginal utility lost when a second good is consumed.

• A) is exactly offset by
• B) is more than
• C) is less than
• D) has no relationship with

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Definitions:

Underwriter

In insurance law, the insurer, or the one assuming a risk in return for the payment of a premium.

Premium

The amount paid for an insurance policy, reflecting the cost of coverage.

Insurable Interest

An interest either in a person’s life or well-being or in property that is sufficiently substantial to justify insuring against injury to or death of the person or damage to the property.

Enforceable

Describing a legal agreement or obligation that can be upheld and compelled by law through legal action.