Diminishing Marginal Utility Means That an Increase in the Consumption

question 130

Multiple Choice

Diminishing marginal utility means that an increase in the consumption of a good leads to

• A) a decrease in total utility.
• B) a decrease in marginal utility.
• C) a decrease in the fall of the price of the good.
• D) a decrease in the consumer's budget.
• E) an increase in the consumer's budget.

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Definitions:

Fossil Fuels

Non-renewable energy sources formed from the remnants of ancient plants and animals, including coal, oil, and natural gas.

Biogeochemical Cycles

Processes that recycle essential elements and compounds between the biological (living) and geochemical (non-living) components of the Earth.

Stable Ecosystems

Ecosystems that remain relatively constant in terms of their species composition, structure, and function despite disturbances.

Greenhouse Effect

The trapping of the sun's warmth in the planet's lower atmosphere due to the greater transparency of the atmosphere to visible radiation from the sun than to infrared radiation emitted from the planet's surface.