Total Utility

question 92

Multiple Choice

Total utility

• A)diminishes as the quantity consumed of a good increases.
• B)increases as long as more goods are acquired.
• C)increases as long as marginal utility increases.
• D)increases as long as marginal utility is positive.
• E)diminishes as consumption of some good rises.

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Definitions:

Voluntary Behaviour

Actions that are under conscious control, as opposed to reflexive or involuntary actions.

Expectancy-value Models

These models explain how the expectations of success and the value of goals affect motivation and decision-making.

Incentive

A motivation or reward that encourages a person or group to act in a certain way.

Person's Perception

The subjective process through which individuals interpret sensory stimuli to form their own understanding of the world.