As a Rule, the More of a Commodity a Consumer

question 134

True/False

As a rule, the more of a commodity a consumer acquires, the smaller will be her total utility from that good.

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Definitions:

Interest Income

Earnings received from deposit accounts or investments through the payment of interest.

Eligible Dividends

Dividends that are designated by a corporation to be eligible for a lower tax rate for the receiver, depending on jurisdiction.

Average Tax Rate

The percentage of total income that goes to taxes, calculated by dividing the total amount of tax paid by the total income.

Taxable Income

The sum of earnings that determines the tax liability of a person or corporation to the state.