According to the Law of Diminishing Marginal Utility

question 75

Multiple Choice

According to the law of diminishing marginal utility,

• A) as the consumption of a particular good increases, marginal utility increases.
• B) as the consumption of a particular good increases, marginal utility decreases.
• C) total utility is always negative.
• D) B and C are correct

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Definitions:

Appeals to Tradition

A logical fallacy where it is argued that something is right or acceptable because it has been traditionally done or believed.

Non Sequitur

A conclusion or statement that does not logically follow from the previous argument or statement.

False Analogy

An argumentative flaw where two things being compared are not sufficiently similar in relevant aspects, leading to a misleading or invalid conclusion.

Overconfidence Bias

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.