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Which of the Following Might Help Analyze the Consequences of New

question 14

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Which of the following might help analyze the consequences of new public policies


Definitions:

Law of Diminishing Marginal Utility

states that as a person consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.

Principal-agent Problem

A dilemma occurring when one person or entity (the agent), is able to make decisions on behalf of, or that impact, another person or entity: the principal.

Complementary Resource

A good or service that enhances the use or value of another good or service when the two are used together.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in a given timeframe.

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