Which One of the Following Would Not Be a Good

question 66

Multiple Choice

Which one of the following would not be a good use of a home equity loan?

• A) Paying for college
• B) Buying a new boat
• C) Putting a new roof on your house
• D) Paying medical bills
• E) Adding a deck on the back of your house

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Definitions:

Marginal-Utility Schedules

Charts or tables showing the relationship between the quantity of a good consumed and the marginal utility or satisfaction received from consuming each additional unit.

Maximum Utility

The highest level of satisfaction or benefit that a consumer can obtain from consuming goods and services, given their income and prices of goods.

Satisfaction Per Dollar

A measure of the utility or happiness a consumer gains per unit of expenditure.

MUₐ /Pₐ

The ratio of marginal utility (MUₐ) to the price (Pₐ) of an item, often used in consumer choice theory to evaluate optimal consumption.