The Law of Diminishing Marginal Utility

question 21

Multiple Choice

The law of diminishing marginal utility

• A)is valid only after basic necessities (such as food and shelter)have been obtained
• B)says that marginal utility decreases as more of a good is consumed
• C)implies that spending on a good will decrease as more of that good is consumed
• D)says that marginal utility decreases as income increases
• E)implies that spending on a good decreases as income increases

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Definitions:

Unfair Labor Practice

Actions by employers or unions that violate the rights of employees or the procedures of collective bargaining under existing labor laws.

Conventional Arbitration

A dispute resolution method where an impartial third party hears arguments from both sides and makes a legally binding decision.

Chilling Effect

A situation where the fear of potential legal or economic repercussions results in hindered or silenced expression, often in the context of free speech, journalism, or public participation.

Bargaining Impasses

Occurs when the parties involved in negotiation, particularly in labor negotiations, are unable to reach an agreement despite prolonged discussions.